Understanding the “Subtract Exit Quantity from Signal Quantity” Setting in TradersPost
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The “Subtract Exit Quantity from Signal Quantity” setting ensures that trades correctly offset existing positions, preventing errors when switching between long and short positions. This feature is useful for traders who prefer manual control over position sizing adjustments.
Traders using TradersPost may come across the setting “Subtract Exit Quantity from Signal Quantity.” This option helps traders properly manage their position sizing when entering or exiting trades, especially when flipping between long and short positions.
Let’s break down what this setting does and when to use it.
What Does “Subtract Exit Quantity from Signal Quantity” Do?
This setting ensures that when a trader sends an order, the system properly offsets the current position to achieve the intended final position.
For example, if you:
• Currently own 10 shares of Tesla (long 10).
• Want to be short 15 shares of Tesla.
• Send an order to sell 15 shares without checking this setting—TradersPost may not fully account for your existing 10 shares.
• By enabling “Subtract Exit Quantity from Signal Quantity,” TradersPost subtracts your existing 10 shares from your intended short position of 15 and correctly sends an order to sell 25 shares—ensuring you end up net short 15 shares.
When Should You Use This Setting?
1. Flipping a Position from Long to Short (or Vice Versa)
• If you’re currently long 10 shares and want to switch to short 15 shares, the system needs to sell your 10 shares first, then place a new sell order for 15 more.
2. Manual Position Offsetting
• Some traders prefer manual control over how many shares/contracts are offset rather than relying on automatic position management.
3. Trading Futures or Options with Precise Quantity Adjustments
• Futures traders often switch between long and short contracts and need to ensure the correct number of contracts are offset when changing positions.
When Should You NOT Use This Setting?
• If You Are Using Side Swapping – Side swapping in TradersPost automatically switches between long and short positions without requiring manual quantity calculations.
• If You Do Not Intend to Offset a Position – If you only want to close an existing position without opening a new one, this setting is unnecessary.
Final Thoughts
The “Subtract Exit Quantity from Signal Quantity” setting helps traders ensure that their trade signals properly offset existing positions and result in the intended final position. This is particularly useful for traders moving between long and short positions or manually managing trade execution.
Traders should test this feature in paper trading before using it live to ensure they fully understand how it works with their trading strategy.