Scale Order Examples

Using the same order information for all five examples, the scenarios below illustrate the basic behavior of ScaleTrader orders. These examples do not cover all of the potential algorithmic results that would occur on partially filled component levels.

Non-variable Scale order values

NBBO: $10.12 - $10.15

Order Size: 10,000

Action: Buy Limit

Initial Scale Component Size: 2000

Subsequent Component Size: 1000

Price Increment: $0.01

Start Price: $10.15

Time in Force: GTC

Example 1: Basic Scale Order

The order is scaled into 9 components of one at 2000, and then eight at 1000 each. The first 2000-quantity component is submitted at $10.15. After this level fills, the next component (1000) limit order is submitted $10.14. The next component is submitted at $10.13 but price movement renders this order unmarketable. The remainder of the order waits. The order becomes marketable, fills, and the next component is then submitted. This pattern continues until all components have filled, or you cancel the order.

Example 2: Scale order with Profit-Taking Orders

Profit Offset: $1.00
Note that the profit orders are scaled to the Subsequent Component Size regardless of whether or not the Initial Component Size is larger. If the Initial Component Size is greater, the profit order price is calculated using the price increment and the profit offset amount.

The order is scaled into 9 components of one at 2000, and then eight at 1000 each. The first 2000-quantity component is submitted at $10.15. After this level fills, the next 1000 lot component is submitted $10.14, and profit orders of 1000 at $11.15 (fill price + profit offset) and 1000 at $11.16 (fill price + price increment + profit offset) are submitted. The buy limit at $10.14 fills, and the next component is submitted at $10.13, and a 1000 lot SELL limit order is submitted for $11.14. Note that because you have set the time in force to GTC, the sell orders work until your minimum acceptable profit amount for exiting the position is met.

You can set the Profit Offset from the trading window, or use the Create profit taking order checkbox on the Scale tab of the Order Ticket.

Example 3: Scale order with Profit-Taking Orders and Restore Size instruction

Profit Offset: $0.02

Restore Size after taking profit: box checked on Order Ticket Scale tab

The order is scaled into 9 components of 2000, 1000, 1000, 1000 etc. The first 2000-quantity component is submitted at $10.15. After this level fills, the next limit order for 1000 is submitted at $10.14, and profit orders of 1000 at $10.17 (fill price + profit offset) and 1000 at $10.16 (fill price + price increment + profit offset) are submitted. The sell order fills at $10.17, taking the profit, and the filled quantity of 1000 is put back into the original order at $10.15 and the $10.14 component is cancelled.

Activate the Restore size after taking profit instruction using the checkbox on the Scale tab of the Order Ticket. This feature is only available if the profit-taking order feature is used.

Example 4: Restart ScaleTrader

The Restart feature helps you resume a busted ScaleTrader order from the point of the bust. A bust results in a lost connection between the scale and profit order processes, leaving two independent scaled orders. You can cancel these orders and create a new ScaleTrader Restart order.

Profit Offset: $0.02

Restore Size after taking profit: box checked on Order Ticket Scale tab

Restart ScaleTrader : box checked on Order Ticket Scale tab

Existing Position value: 3000

The Existing Position value of 3000 tells ScaleTrader that the initial component of 2000 and the first subsequent component of 1000 both filled, at $10.15 and $10.14 respectively. It "restarts" the scale order beginning with the 3rd component. The first buy order is for 1000, and is submitted at $10.13. The profit-taker orders are set up for 1000 at $10.17, 1000 at $10.18, and 1000 at $10.16, which is submitted.

Activate the Restart ScaleTrader instruction using the checkbox on the Scale tab of the Order Ticket. This feature is only available if the profit-taking order and Restore Size instructions are used.

Example 5: Restart ScaleTrader with Filled Initial Component Size

A busted scale order results in a lost connection between the scale and profit order processes, leaving only two independent scaled orders. The Restart instruction is designed to help you resume a cancelled or busted ScaleTrader order, starting from the point at which the scaled sequence left off. First, cancel the two separated scale orders. Next, create a new ScaleTrader Restart order by identifying your current position and telling ScaleTrader how much of the initial component size filled in the busted order. ScaleTrader will restart the order at the appropriate component and price level.

The Filled Initial Component Size field only becomes active if the Existing Position value is less than the Initial Component Size.

Profit Offset: $0.02

Restore Size after taking profit: box checked on Order Ticket Scale tab

Restart ScaleTrader: box checked on Order Ticket Scale tab

Existing Position value: 500

Filled Initial Component Size: 1200 (this value must be greater than or equal to the Existing Position value, up to a maximum of the Initial Component Size).

The Filled Initial Component Size of 1200 tells ScaleTrader that there is an unfilled quantity of 800 (of the 2000 Initial Component Size). The first buy order for 800 is submitted at $10.15, and profit-taker orders of 1000 and 200 are set at $10.17 and $10.18, respectively.

Activate the Restart ScaleTrader instruction using the checkbox on the Scale tab of the Order Ticket. This feature is only available if the profit-taking order and Restore Size instruction is used, and if the value in the Existing Position field is less than the Initial component size.

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