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I think I didn't explain my point of view. I wrote what I wrote
from the point of view of someone who is attempting to develop
automated trading systems. The deficiency in TS of not updating
signals on every tick is a serious deficiency for automation. If
a signal occurs during the formation of a 5-minute bar, the order
must be placed right then, not wait another 3 minutes for the bar to
form. I don't care if it gets filled 20 seconds after it's placed;
but I *don't* want it to wait until the bar completes.
>> However, when it comes down to trading, you want the trading
>> strategy you programmed to generate *signals* in real time.
>But two things:
>
>explain, how will you ever be able to place a "market on close"
>order if you desire to do so in your strategy. Orders in this case
>will alway's take place on the open of the next bar.
That's my point. I want the strategy to be updated every tick. If
I'm using 10-minute bars, then if I want a MOC order, my strategy
could wait until approximately 1 minute before close to send its
market order.
>That's what i use the updating indicators for. To anticipate in the
>comming trade. All i need to do is press the button the moment
>i see the signal.
Me, I'd rather not sit in front of the computer staring at a chart.
>If i wait for after the signal, i need to log in to my broker, place
>the order (select the stock etc), press the transmit button.
Trading manually like you, I would have my broker software and TS
running concurrently, so there would be no delay. Many brokers have
online trading software that is quick and easy. Interactive Brokers
and Rosenthal Collins come to mind.
>This will cost time. Time most of the times costs money :-)
>I want to have the order at the exact same price as my system
>tells me it was traded. Transmitting it 30 seconds later will
>introduce unneeded slippage.
Again, that's my point. If a signal occurs when the bar starts to
form, I shouldn't have to wait for the bar to finish for the order
to be generated.
>> Now the kicker: The TS "update every tick" feature works ONLY with
>> indicators. There is no way to update every tick for signals.
>
>That for sure you would not want. That would get you in and out
>inside a bar all the time. The updating indicators will only allow
>you to prepare your orders. That's all.
I haven't seen a single instance (looking at raw tick data) where
any of my systems would get me in and out all the time if signals
were updated every tick. I wrote them with that in mind, then was
disappointed to learn that TS doesn't work that way. There's no
whipsawing because the protective stop placed after entry is well
outside the range of the current bar, so there's nothing that would
get me out once I get in, except for a dramatic adverse move.
What the strategy does (or is supposed to do) is wait for a signal
to occur and then place a limit order. For example, if the price
rises to a certain level, place a limit order to sell at a slightly
higher level. Sometimes that same bar should trigger the limit
order. But TS can't do it -- I've seen it generate a signal on a
swing high bar, then the limit order is placed on the next bar,
which is too late, the market has already turned.
It doesn't matter how many limit orders are placed during the bar's
formation. Once the order is filled, no further orders are placed
until the position is exited. However, TS waits until the bar
completes, sometimes causing a favorable entry to be missed.
>Exactly. But updating on every tick for strategies you realy don't want.
No, I really do want. Truly. If you are going for automation, this
is a mandatory feature. TS advertises that automation is possible,
but it really isn't fully possible without this feature.
>Then it might be that it would get you in and out a trade 20 times
>an hour just because your indicators or strategy is exactly at a turning
>point.
Hmm.... I don't know what you have in mind that would do this. What
I write would'nt behave that way.
-Alex
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