Stop Loss placement Trade

[zemuss]

I use MedVed Trader with TDA and I have a question. I trade mainly options and have issues placing a STOP LOSS on an open Trade. 

When i open the Option I open a chart for the strike price i entered. I cannot figure out what the right order type is to set the stop loss. 

Thanks for the help in advanced.

[zemuss]

Should I be using a OCO (Order Cancel Order)?

[Jerry Medved]

if you already bought the option and just want to place a stop order, you can enter a "STOP MARKET" or "STOP LIMIT" order.

If you are placing an order to buy and option and wish to have the stop order automatically paced once the buy executes, you would want to place an OTA conditional order (One Triggers Another)

[zemuss]

Thanks Jerry. 

Do you have any videos explaining OTA? Or should i check my broker.. 

 

I will try to use the Stop Limit today.

[Jerry Medved]

in a trade ticket, you can use something like this:

In this particular example I am placing a limit buy at 4.80.  If it executes, the SELL STOP MARKET will be placed with a stop price of 3.80

[zemuss]

@Jerry Medved This is great thank you.. 

Any plans of a simple drag and drop approach to setting SL and TP?

 

 

[Jerry Medved]

you can do that on the chart for the option symbol. Before starting the buy, select OTA as the combo order type. Then select BUY and drop the combo order on the chart. you can then move the capsules where you want them before transmitting the order. 

[zemuss]

NICE! And I can trail it up manually??

Edited May 11, 2022 by zemuss

[Jerry Medved]

Sure. You can specify a trailing stop as the conditional order

[zemuss]

I love this program.. need to check this out soon!

I going to make a new topic for another question.

[zemuss]

When i place a OTA order with the Option it sets the order fine. However, Lets say I want to set the order to break even, It doesn't appear I can move that capsule after the order is transmitted.

[Jerry Medved]

that depends on the broker. TD Ameritrade API does not allow modification of conditional orders, so you would need to cancel and re-submit. Others do allow edits

[zemuss]

Ok but if I cancel it isn't allowing me to re-enter the OTA order on the trading screen.. I am wondering what I am doing wrong. 

 

 

[zemuss]

Do I have to select OTA from the drop down while selecting LMT (Limit) then click the sell button to place a new OTA? 

 

[Jerry Medved]

you would have to cancel and re-enter both orders, same as you did initially

[zemuss]

The option order and OTA? This doesn't make sense if so.. i would be say 50% in profit of the Option and want to move the SL to BE which at this point is just a OTA placed on the order.

 

 

[Jerry Medved]

whatever conditional order you have entered, you would need to cancel  (all legs) and re-enter the order with the modified price and/or quantity - whatever you want to change. If the original order was OTOCA and nothing executed yet, then the entire OTOCA. If the initial order already executed, then you would cancel the remainder and just enter an OCA (or bracket) order as a replacement

[zemuss]

I think i got it! Start with a OTA then Bracket Order 

 

i will try the bracket order after the initial trade execution..

Thanks, sorry just not used to this functionality yet. Any videos on it ?  Do i need to check TDA for that?

So the order is executed and after I am up 25% I like to place a TP and SL.. This would be my bracket order?

Edited July 21, 2022 by zemuss

[Jerry Medved]

yes, after the initial order in the OTOCA is executed, what remains is the OCA order, which is same as BRACKET, MT just makes it easier to enter it that way instead of doing conditional order OCA

[zemuss]

@Jerry Medved just wanted to know if you ever consider doing the below image in Medved Trader?

NVM this is basically a bracket order.. 

 

Edited July 21, 2022 by zemuss