Hello,
when checking out a possible short strategy, I wanted to set the limit price for a "Short at Limit" entry to a value that practically everything gets shorted (no matter of the limit price).
So, I set the price to 90% below Close, assuming that with that setting the stock would not be shorted only in case the price gets down more than 90% compared to the low of the previous close - an event to occur practically never.
But strangely with that setting no stock gets shorted... Do I misunderstand something with these settings?
(I also tried it with "above Close", but also nothing gets shorted with that setting.)
Thanks for your help!
Werner
when checking out a possible short strategy, I wanted to set the limit price for a "Short at Limit" entry to a value that practically everything gets shorted (no matter of the limit price).
So, I set the price to 90% below Close, assuming that with that setting the stock would not be shorted only in case the price gets down more than 90% compared to the low of the previous close - an event to occur practically never.
But strangely with that setting no stock gets shorted... Do I misunderstand something with these settings?
(I also tried it with "above Close", but also nothing gets shorted with that setting.)
Thanks for your help!
Werner
Rename
Your understanding is correct, but maybe the problem elsewhere, Position Sizing?
Oh sure, it's probably Position Sizing. The basis price is the limit price you specified. So, 90% lower than a $100 stock is $10. Essentially, you'll be buying 10x the shares for the same amount of cash.
This is probably creating NSF Positions. Check the NSF Count in the Metrics Report.
This is probably creating NSF Positions. Check the NSF Count in the Metrics Report.
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