Does anyone have experience in the mechanics of maintaining a converging trailing stop via the API??
I mean a stop where the trailing amount is wide at the start (to give a trade space to take hold) but then progressively reduces the trailing amount once the position becomes profitable, in order to protect the profit.? So, for example, a 25% trailing stop allows the trade to established, but then is reduced to, say, 20%, 15% and a minimum (say) 10% once the trade reaches certain profitability levels.? I think some people call it a tangential trailing stop.
Theoretically, I would guess the mechanics via the API would be something like this (but looking for comment/correction!):
- Place initial entry order and (say) 25% trailing stop order as a parent/child order
- specify OCA group/type on the trail stop order.
- After entry, at each new profitability level:
- Place a new trailing stop order with a new trailing % amount and with same OCA group/type as original trail stop order.
- Cancel the original (and any other previous) trailing stop orders.
However, I'm not 100% sure of these mechanics and have these questions in my head:
- Can I just keep adding trailing stops (without cancelling previous ones) provided they are all part of the same OCA group, and save the cancelling step above?
- Are there any robustness concerns with regularly cancelling and replacing orders, or having multiple trailing stops sitting in an OCA group?? I don't want any trail stops to inadvertently enter a short position, obviously.
- Or is there a better way that I haven't considered?
I would love any comments from anyone with experience, or even just views, on this.
