- how to use bracket orders
A bracket order is a type of conditional order. Conditional orders are those in which the execution of one part of the order is contingent upon the fulfillment of certain conditions, such as a specific price level being reached. You can use it in our app, test strategies using bracket orders and automate your backtesting process.
A bracket order is a more comprehensive order type that consists of three separate orders: a market order, a limit order to take profits (profit-taking order), and a stop-loss order.
Here's how a bracket order typically works:
Market Order: This is the initial order to buy or sell a security at the current market price. It is executed immediately.
Limit Order (Profit-Taking Order): Along with the market order, a limit order is placed at a specific price level above the current market price if you're buying (or below if you're selling). This order is intended to lock in profits when the security's price moves in a favorable direction.
Stop-Loss Order: Another order is placed, typically below the market price for a long position (or above for a short position). This stop-loss order is meant to limit potential losses by triggering a sale if the security's price moves against your position.
How to use it in the App
Using bracket orders in 3 steps:
- Settings -> check the Auto TP and Auto SL boxes
- Set pip targets for the Take Profit and Stop Loss (TP/SL)
- Create a trade using a market order -> TP/SL auto-created