OmniTrader Forum - OmniTrader Feature Requests
Reversal Signals in TP

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John J

Posts: 218

Joined: 8/3/2010
Location: Leduc, AB

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Subject : Reversal Signals in TP
Posted : 12/2/2017 1:14 PM
Post #42754

Since the inception of OT, a lot of effort has gone into producing good signals (ATS is a very good example of this). I think now is the time to put more efforts into producing good Stops. As it stands right now, the Stop routines can only see Long or Short signals, which resulted in an open trade. Reversal signals cannot be used in a TradePlan block, only in an Orders block. What I would like to see is more intelligent Stop routines (compatible with TP obviously) that can "see" all reversal signals that appear on the Voteline.

Here is an example; Let's say that a Long signal resulted in an open trade. Then on subsequent bars, three reversal (Short) signals appears in short order for the same symbol on the Voteline. I'd say this is a clear indication that the trade has turned sour. However, the present implementation of the Stop routines have no way of picking up on this, and the SP is likely to drift southward until the stop loss is taken out. Granted, proper money management may have taken the stop loss into account, but it's still a loss which could have been avoided (the writing was on the wall due to the string of reversal signals). For trades that are already in the money, trailing stops etc. should be tightened up after one or more reversal signals (the required number of reversal signals should be user configurable).
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Jim Dean

Posts: 2770

Joined: 9/21/2006
Location: L'ville, GA

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Subject : RE: Reversal Signals in TP
Posted : 12/2/2017 3:25 PM
Post #42755 - In reply to #42754

Hi John ... I fully agree that a lot more attention needs to be given to Stops and TradePlan ... *starting* with just making the existing stuff work properly, then moving on from there to adding Reversal capability, other order types (IB has a zillion), and ability for a Script or OLang routine to modify the allocation percentages.

BUT ... as it stands right now ... with a couple of qualifiers ... you can do pretty much what you are talking about re a trade turning south. No, TP's cannot do Reversals (and I'm glad about that, since I'm scared of a TP *accidentally* creating a reversal due to partial fills at the broker). But it *can* readily be set up to "scale out" of a trade, as "warning events" occur.

You described those events as opposite signals from a System ... but they just as well could be OmniScript rules or OLang Stop rules ... or any of the canned stops that OT and it's many plugins offer.

So, while you're waiting for a major overhaul, you might try that out. :~)

And, btw, over at TradeTight I'm about to release a really powerful Trade Management routine that integrates support for multiple and intermixed AddOns (scaling in) and PartXits (scaling out). So, my prior statements are not guesswork ... it can be done and, done properly, it really helps!
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John J

Posts: 218

Joined: 8/3/2010
Location: Leduc, AB

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Subject : RE: Reversal Signals in TP
Posted : 12/6/2017 12:52 PM
Post #42821 - In reply to #42754

Thanks Jim,

I may have to take a look at your powerful Trade Management routine once you've released it..!
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Jim Dean

Posts: 2770

Joined: 9/21/2006
Location: L'ville, GA

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Subject : RE: Reversal Signals in TP
Posted : 12/6/2017 1:16 PM
Post #42823 - In reply to #42821

Actually it looks like there might be 2-3 of them ;~)


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