This Autopilot section will determine how you enter the market after an entry signal has been received.
Review the next four manual pages for a detailed description of each Entry Strategy section.
Market Order On Signal: The Autopilot will execute an 'at the market' entry order immediately upon receiving a buy or sell signal from your chosen indicator.
Stop Entry On Signal: Will create a buy stop or sell stop order into the market at the user-defined number of tics/pips above or below the signal price bar close.
For Example: If you have selected stop entry on signal and you have placed a 3 in the tics/pips field, upon receiving a buy signal, Track ‘n Trade will automatically place your buy stop entry order three tics/pips above the close of your signal price bar.
Advantages and disadvantages to using a Stop entry order:
Limit Entry On Signal: Will create a sell limit or buy limit order into the market at the user-defined number of tics/pips above the signal price bar close for a sell limit order or below the close for a buy limit order.
For example: If you have selected a limit entry order on signal and you have placed a 3 in the tics/pips field, upon receiving a buy signal, Track ‘n Trade will automatically place your buy limit entry order three tics/pips below the close of the signal price bar.
Advantages and disadvantages to using a Limit entry order:
MIT (Market If Touched) Entry on Signal [Futures Only]:
If market gaps enter with MKT order within X tics/pips: There is a chance that the market may gap over your specified stop/limit entry price. This filter states that if the market gaps beyond your stop/limit entry price within so many tics/pips, then enter instead with a market order. If the market gaps over your entry price beyond your specified allowable tics/pips, the Autopilot will not place the trade.
Just like an engine has a governor to keep it from revving too fast, the Autopilot has a Thrust Bar Regulator. If the market revs up too high, the Thrust Bar Regulator will keep the Autopilot from entering the market. You’ll often time hear technical analysts refer to this phenomenon as the market having moved too far too fast.
If selected, you can specify how high, or low you are willing to allow the market to move during any single timeframe and within a specified number of price bars before allowing the autopilot to place an entry order.
For example, sometimes news events will radically move a market too far too fast, making it unwise to enter the market. Therefore this setting allows Track 'n Trade to monitor the market for just such an event, and if the market price jumps radically higher or lower, and gives what I call a "long-bar," and your chosen indicator then throws a buy or sell arrow at the top or bottom of that thrust bar, the Thrust Bar Regulator will keep the Autopilot from placing an order to enter the market.
This highly effective tool also includes a Q-Calc. button to help determine the best setting for your given market and strategy.
It's often said that the markets can go one of three directions, it can go up, it can go down, or it can go sideways. If the market goes up we want to buy, if the market goes down we want to sell, but what do we do if the market is going sideways? The Inactivate Market Signal Prevention will specifically filter out these sideways moving markets.
If you find that a market is trading within a small price range, and not actively trending upward or down, you may use this filter to avoid placing trades during this time. We can tell the Autopilot to not place any new trades if the market has not moved at least so many tics/pips within so many price bars.
By selecting "Trend" from within the drop-down menu, you also have the ability to allow the computer to determine a directional bias by adhering to a specific indicator's arrow on another chart of your choosing.
On your chosen Trend chart, your chosen Trend indicator's most recent arrow tells Autopilot to only take market long and short positions in that same direction, even though Autopilot is trading on a different chart.
Example: If you choose Trend in the first drop-down menu, the second and third drop down menu’s become active.
In the second drop-down window, you see a list of all the active charts. Select which chart you want to use to determine the overall long-term trend. Once the chart has been selected, the third drop down window will display each of the indicators available for use on that particular chart. Choose the trend indicator of your choice, and the Track 'n Trade Autopilot will then only trade the trend, based on your selection.
One such strategy would be to trade the five-minute chart, but to use a 25 and 50-period moving average crossover from the 30-minute chart to determine the trend. When the market is trading above the 30 minutes 25 and 50-period moving averages, we only take long positions on the five-minute chart, and when the market is trading below the 30 minute 25 and 50-period time frame, we only take short positions on the five-minute chart.