Track 'n Trade LIVE Stocks & Options

Video Transcript

In this video, I'm going to take you through and show you a scenario where you might want to program your Q buttons. Now, the first thing you'll notice is that we have four Q buttons, and they've all been pre-programmed with some pre-programmed settings. This one here is a market order, Q2 is a sell market order, and then we have two stop orders. You'll notice that they're all set to percentages.

Now I'm going to go through and show you a scenario where you might want to do programming on a day trading scenario. We're looking at Apple right now, which is currently trading at $193.61, and let's say we want to day trade Apple. So, we're going to come through, and I'm going to set up a day trading strategy within Apple. Then, of course, you can modify it to fit your own specific needs.

The first thing we're going to do is we're not going to edit the existing one; we're going to leave that one there, and we're going to add a new one. So, we're going to come in and click "Add New," and in the title, we're just going to call it "Apple." We're going to make it our default setting. Now, remember, the name is just a name; it's a label that shows up over here in the drop-down box. It doesn't have anything to do with what the software is going to do, so we're just going to give it a label up here, and we'll give it a complete label here in just a minute.

But for now, let's come down through and decide what we want it to do. The first section that we look at here is the entry section, so we can choose what type of order we want, and we're going to use a stop order. You can see that right here it says "percent from order price" or "dollars from order price." We're going to come in here and do dollars.

The next section is the stop entry order, and again, this is still part of our entry. Since we're using a stop, this lights up, and we can come in here and change the entry if we want to trail for entry somehow. We can have an intercept order on the trailing order, but we're not going to do that for now. We're just going to keep it simple and come in with a stop order.

So, that's going to be a static stop order with an attached limit, and we're going to put the attached limit at $0.25—so, 25 cents behind the market. We're going to put our limit out here at $0.50. Okay, so we're going to have a stop at 25 cents, a limit order at 50 cents, and our stop order is going to be, of course, wherever we drop it.

Now, we're not going to do anything else with all of these other settings. We're just going to leave them empty, and I'm going to show you what this does. So, if we come down here and hit "OK," we now have our Apple, which comes up as the first one in the list because it's our default. We hit Q4, and you'll notice that it sets up so that we have our sell stop order, a buy stop above, and a limit order.

With one click, we can set all three orders. Now, in this case, the market's starting to rally. For example, we might want to say if this market breaks above the previous high, we'll get in with a long position. Now, I'm only trading one quantity here, and that's okay. But you'll notice that we have our sell stop, and we have our limit stop. If that order gets filled, our sell stop will be right here at 25 cents behind the market, and our limit order will be out here at 50 cents.

So, that's our 2:1 risk versus reward ratio, and we've got our order set very quickly, very easily, with a simple one click of the mouse. Now, the next thing I want you to know is that you can move these orders anytime you want.

Now, this is a static position, of course. You can grab it and move it. You can say, "I want it to go up here," or "I want it to go down here." Now, it's not filled yet, so you can move it at any point. Once you drop it, your limit order and your stop order are going to stay where they were dropped, but you can also move them. You can come down here and say, "Oh no, I want to have this down here," or "I want to have this down here.

"So, you can move these at any point once you have them set on the screen, but the initial drop is going to be how you told them in the settings. Now, the reason you might want to do this is that they are OCOs—one cancels other. They also one triggers the other.

In this case, once this order becomes filled, it will trigger the entry of these two orders. You'll notice that these two orders are inactive and will not become active until the primary order is filled. So, the primary stop order must be filled. If the market comes down and touches this sell stop right here, nothing will happen. It will go right through it; it will never get executed because the primary buy order did not get filled.

So, these are OTOs, and then once the market gets filled, they become OS, which means if the market goes up and hits our limit order, we take our profits. It will automatically cancel our trailing stop order or our stop order on the other side. So, that's why it's very important to set these together—all three—because then they will cancel each other and trigger each other. All right, so they're OTOs on the entry and then OS on the exit.