Limit order suggestion

At the risk of dragging the dead horse out and beating it some more, I’d like to offer a suggestion as to how to handle limit orders and the potential syncronization problem.

C2 should implement a MIT (market if touched) order. Now, I know that Tradebullet offers this option, but that is only a partial solution. If C2 had a native MIT, in addtion to the Limit order, syncronization issues should be eliminated. How a MIT would differ from the Limit order is that the MIT could be automatically penalized 1 tick (I’m a futures trader, I’m not sure how you would handle this with stocks). This should address slippage complaints that traders currently have with using a Tradebullet MIT with a C2 Limit, and insure that C2 trade system results more closely match actual results achieved by subscribers. If a system vendor didn’t want to pay the 1 tick penalty, he could continue to use Limit orders.

I have a self centered reason for proposing this, as I am working on a system that would use Limit exits. From a marketing standpoint, I’d like to avoid the stigma that such orders have, and be able to build a track record with high Realism Factor that would match what subscribers would actually achieve.



Can you explain to me why the MIT features of Tradebullet are only a partial solution? Note that there are several MIT features, and one of them depends on C2 fills. There is also the possibility to offset limit orders by some ticks. Are you sure that what you propose cannot be done already?


Well, I’m not a Tradebullet user, so I’m going on what I’ve absorbed from comments from all the rest of you.

I think what the issue is with C2 Limit/Tradebullet MIT is that the C2 model portfolio will show more favorable (and in the case of some scalping systems, MUCH more favorable…) results than the user will achieve. Let’s go with an example of how I understand it: Suppose that you put in a limit order to buy May corn at 240. The price just touches 240 and reverses. C2 reports a fill in the system’s track record. Tradebullet users using a limit may/may not get filled. Tradebullet users using some of the various MIT features get filled at 240 1/4. At least that’s how I understand it. What I’m suggesting is that C2 have a MIT order, such that in the example above, the system’s official C2 record would show the “Buy at 240 MIT” order as filled at 240 1/4 (that’s with the built in 1 tick MIT penalty that I propose), thus insuring that the results better reflect what real live people are getting. A side benefit for the system is that it should have a much higher Realism Factor. As I position trade, the built in slippage would be minor.

Or I could be all wrong. (grin)


Hans: Your description of how it works currently is correct. And your suggestion is a good one. I’ll put it in the pile. There are probably a host of serious implications I’ll need to consider before implementing. So nothing will get done immediately. But I’ll make sure it gets reviewed in the medium term.

Thanks, MK. And another benefit that I forgot to mention in my reply to Jules is that a C2 MIT absolutely insures (barring any physical malfunctions…) syncronization. As it stands now, it’s up to the user to either set the parameters correctly, or monitor the trade to stay in sync.