Buystop/Sellstop are limit (or market) prices that are managed by the
exchange rather than triggered from your system.
Two examples if where
it can help you:
1. If an event triggers your system, let's say a
MovingAverage crossover and let's also say that you are using the closing
price of the bar that triggered that event as your entry Limit-Buy price,
there is a good chance that the market will move away from your limit price by
the time your order hits the exchange.
If however you could determine
what closing price would trigger the crossover, you could have a Buy-Stop sent
to the market before that event happens.
2. For channel
breakout/breakdown, where you have no idea whether the market will break above
or below but you are interested of going long or short based upon which way it
breaks, you could "bracket" that channel with a buy-stop and a sell-stop. If
it breaks to the up-side you have a pre-existing order that is managed by the
exchange, likewise if it breaks down.
Of course with STOP orders, all
exchanges will disclaim assurances that you will ever get filled, you just
have a better chances of getting there.
They are very useful order
types once you know how to use them and learn to accept their limitations.
--- In amibroker@xxxxxxxxx
ps.com, "Markus Witzler" <funnybiz@xx .> wrote:
>
>
Hello,
>
> I wonder what I need buystop/sell stop for.
>
> Isn´t it just enough to specify buy rule
>
> buy = ...
>
> and then set the
>
> buyprice = ...
>
> To simulate a buy stop condition, IMO one would just need to set the
buyprice accordingly.
>
> Where does buy stop here come into
play?
>
> Thanks
>
> Markus
>
>
>
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