Script Error Resolution

• 08/27/2024 at 2:13 PM #236745
  cozcozy

  I get an error when I run a script that contains the following command.

  atrValue = AverageTrueRange[atrPeriod]

  if (buyCondition) then
  buy 0.1 share at market
  set stop loss (close – 1 * atrValue)
  set target profit 40
  endif

  if (sellCondition) then
  sellshort 0.1 share at market
  set stop loss (close + 1 * atrValue)
  set target profit 40
  endif

  The error is “Your trading system was stopped because it tried to place a stop order below the minium distance required by your broker”.
  I would like to know how to resolve this error.

  

  cozcozy

  Participant

  Topics: 3

  Replies: 2

  Been thanked: 0 times
  08/28/2024 at 4:00 AM #236769
  JS

  Hi,

  IG may, during the running time of your system, change the height of the minimum stop distance. If you do not meet this (new) minimum stop distance, your system can be stopped by rejecting the stop order.

  Solution: During the activation of your system, you have to accept the automatic adjustment of your stops by checking the checkbox “Adjust stops”…

  2 users thanked author for this post.

  cozcozy, druby

  

  JS

  Participant

  Topics: 26

  Replies: 1716

  Been thanked: 778 times
  08/28/2024 at 4:37 AM #236771
  druby

  I read the error as: ‘Your Broker’ has a ‘Minimum Stop Distance’ and your +/-  1*ATR was too small, and below the level.

  First thing, find out the Minimum Stop Distance for that instrument used.

  If I try the set a manual trade with too small a stop, I get a warning box appear, and usually it states what the minimum distance is.

   

  Also you will have to take into account any spread and the direction the price is moving at entry, because even the minimum may be too tight if its going against trade direction, and the spread may change through the day.

  Its possible that the instrument, at certain times, 1*atr may be big enough, but not at others.

   

  The solution is to increase the size of the stop.

  For alternatives:

  • Only take trades when the 1*ATR is bigger than the Minimum Stop Distance.
  • Have the stop at 1*ATR, or at the approx minimum distance, which ever is bigger.
  • Use a different multiplier value on the ATR, example 1.5 * ATR etc… if thats big enough.
  • other…

  This will increase the risk on the trade, and therefore you may want to reduce the entry size to compensate.

  Changing the Stop size will alter the win rate and hence the risk/reward may not be adequate, so will have to backtest with new parameters.

  These are a few general thoughts, It depends on how and what your trading, and what you trying to achieve with system/strategy.

  Hopefully this may be helpful

   

   

  1 user thanked author for this post.

  cozcozy

  

  druby

  Participant

  Topics: 1

  Replies: 354

  Been thanked: 268 times
  08/28/2024 at 8:08 AM #236774
  JS

  Unfortunately, no one knows in advance what values IG will adjust the minimum stop distance to, especially in volatile times…

  As you can see on the screenshot for the US Tech 100 the Stop distance (min-max): 4 points – 75% !!!

   

  

  JS

  Participant

  Topics: 26

  Replies: 1716

  Been thanked: 778 times
  08/30/2024 at 2:49 PM #236901
  cozcozy

  @JS

  Thanks for the reply.
  By checking the checkbox as you advised, the program worked.
  However, the trade results were not very good. I will work on improving it…

  

  cozcozy

  Participant

  Topics: 3

  Replies: 2

  Been thanked: 0 times
  08/30/2024 at 2:59 PM #236902
  cozcozy

  @druby

  Thank you for the useful advice you gave me.

  

  cozcozy

  Participant

  Topics: 3

  Replies: 2

  Been thanked: 0 times
• Author
  Posts