How to use Filters & Custom Formulas for Exit Orders
How to use Filters & Custom Formulas for Exit Orders
To use Optima Filters and Custom Formulas for Exit Orders, right-click in the Strategies Tab of Brokerage Plus and choose New/Edit Trading Strategy. Then, head to the Risk Management Section.
Risk Management Tab
Here, you’ll have the option to choose a Stop Loss or Trailing Stop and a Target.
Your options are to define your Stop and Target in Dollars, in Percent, or with the help of a Filter.
Optima does not hold any orders, all orders are immediately sent to the brokerage. For this reason, orders cannot be based on a value that requires constant monitoring and recalculation like a moving average or a bar stop.
Filter as Stop Loss
When using a Filter or Custom Formula as a Stop Loss, please note the following:
The calculation needs to result in a static Dollar/Percent Value
The filter value will be subtracted from the Price for Long Trades
Stop Loss = Price - Filter
The filter value will be added to the Price for Short Trades
Stop Loss = Price + Filter
Filter as Target
When using a Filter or Custom Formula as a Target, please note the following:
The calculation needs to result in a static Dollar/Percent Value
The filter value will be added to the Price for Long Trades:
Target = Price + Filter
The filter value will be subtracted from the Price for Short Trades:
Target = Price - Filter
Overview Use of Filters in Orders
As Entry Orders (Limit/Stop Limit)
L/S | Order Type | Filter Reference | Filter Example | Filter Application | Result |
Long | Stop Limit | Stop Formula | Today’s High $8 | Exact Filter Value in $ | Stop is placed at $8 |
Long | Stop Limit | Limit Formula | Today’s High $8 | Price - Filter | If Price is $10 and Filter is $8 Limit = $2 |
Short | Stop Limit | Stop Formula | Today’s Low $5 | Exact Filter Value in $ | Stop is placed at $5 |
Short | Stop Limit | Limit Formula | Today’s Low $5 | Price + Filter | If Price is $10 and Filter is $8 Limit = $18 |
As Exit Orders (Stop Loss/Target/Trailing Stop)
L/S | Order Type | Exit Type | Filter Example | Filter Application | Result |
Long | Limit | Target | Today’s High $8 | Price + Filter | If Price is $6 and Filter is $8 Target = $14 |
Long | Stop Market | Stop Loss | Today’s Low $4 | Price - Filter | If Price is $6 and Filter is $4 Stop Loss = $2 |
Long | Stop Market | Trailing Stop | Today’s Low $6 | Price - Filter | If Price is $10 and Filter is $6 Trailing Stop = $4 |
Short | Limit | Target | Today’s Low $6 | Price - Filter | If Price is $10 and Filter is $6 Target = $4 |
Short | Stop Market | Stop Loss | Today’s High $12 | Price + Filter | If Price is $10 and Filter is $8 Stop Loss = $18 |
Short | Stop Market | Trailing Stop | Today’s High $8 | Price + Filter | If Price is $10 and Filter is $8 Trailing Stop = $18 |