Limit Orders and the like...

[Cleski]

Hi,

I am hoping that someone may be able to help me with the limit orders I am setting up.

My broker is oanda and I am working on a breakout strategy but having a bit of difficulty with them. I set my orders up as a limit order with a SL and TP but in the last week I have had the following problems:

1. My limit order got triggered 2 pips early (this can be seen from the candle). As my system works on support and resistance this really shanked me.

2. My take profit, although hit, wasn't executed (again this can be seen from the candle penetrating it)

I would guess that everyone has had this problem before and I've certainly read about it. I've never experienced it though and now I am using a live account wondered if anyone had any tips on how it can be combated?

I would guess that the only real way is to watch the charts and manually place orders but the system I use works much better when triggered automatically (if done correctly!)

Has anyone ever contacted their broker about this sort of thing or do they just exume any responsibility?

I have just realised that this may have been questioned and answered before, sorry I haven't searched on it.

Cheers

[daydreamer65]

Originally Posted by Cleski

Hi,

I am hoping that someone may be able to help me with the limit orders I am setting up.

My broker is oanda and I am working on a breakout strategy but having a bit of difficulty with them. I set my orders up as a limit order with a SL and TP but in the last week I have had the following problems:

1. My limit order got triggered 2 pips early (this can be seen from the candle). As my system works on support and resistance this really shanked me.

2. My take profit, although hit, wasn't executed (again this can be seen from the candle penetrating it)

I would guess that everyone has had this problem before and I've certainly read about it. I've never experienced it though and now I am using a live account wondered if anyone had any tips on how it can be combated?

I would guess that the only real way is to watch the charts and manually place orders but the system I use works much better when triggered automatically (if done correctly!)

Has anyone ever contacted their broker about this sort of thing or do they just exume any responsibility?

I have just realised that this may have been questioned and answered before, sorry I haven't searched on it.

Cheers

Yes it has been answered a few times before.

The problem is the spread & what Oanda's chart is showing.

All platforms will show average price, that is the price midway
between the spread (ie if the spread = 5, the chart will show 3,
not 0 or 5) unless you change the settings to show bid or ask.

Therefore the mid-point may break your TP line but the bid or ask
will not. Also the opposite applies for your limit order, this gets triggered
earlier than you have set it up to trigger.

The limit order problem can be changed ie set the trigger to bid (long)
or ask (short). The TP will never be changed because even if you were
to set it up to accommodate the spread it may still fall short.

PS As can be seen in the thumbnail in a long trade the ask &
average price can touch the TP line but the bid would never
trigger.

[Cleski]

Thanks so much for taking the time to reply, that's massively useful to me.

Cheers