Track 'n Trade LIVE Stocks & Options

Video Transcript

In this video, we're going to continue the conversation that we started in our previous video on QOs, where we're going to go into an advanced trading strategy. Here, we're going to program our Q4 button to trail for entry.

Now, the way we do that is we right-click, and we're going to come down and edit the Apple settings that we started in the previous video. This time, you can see that the top section of this box is for entry. So we're going to come down where it says "stop entry order settings.

Now, this grays out if we use Market order or sell stop, but if we use stop order, this lights up. Then we can come in here and we want to trail for entry. Now, in this case, we're going to look at the market and decide that we want to trail on those blue lights. So we're going to come in and we're going to slide down to blue lights, and we're going to say, "I want to trail blue lights until entry.

Alright, not till exit. This is going to be an entry, so this is an intercept order, as we call it. If you'll notice in this drop-down, there are a number of different ways of intercepting the market and trailing your stop for entry. This will be an open stop that is not filled until it crosses over—in this case, the blue light crosses the price of the underlying stock.

You can also do percent open profit, percent behind, dollars behind, trail by price bars, ATR, PSAR, zigzag, and so we've got a number of different choices for you in here to intercept the market, in this case, for a long position.

This time, we're going to leave it on bulls and bears blue light, and we're going to leave this in here with a stop at 25 cents and a limit at 50. Now we're going to come in, and we're going to go ahead and say bulls and bears blue light, and we hit okay, which sets that to trail now on the blue light system.

So what we're going to do is come in to set this. We click the QOCO, and then we need to drop it above the blue lights. If we drop it above the blue lights, it will automatically jump to the blue lights, set our trailing stop, and set our trailing limit.

So we set our trailing stop at 20 cents, and in this case, it's at 55 cents. Now, as that market moves, those blue lights, each time it gets a new blue light that comes closer to the market, it will drop and automatically move closer to the market and intercept, in this case, for a long position.

That's what we would be looking for in this case—an intercept for a long position—and then our sell stop would automatically trigger and become active, and our limit order would automatically become triggered and active.

So that is a "one triggers other" in this case. These two orders are inactive until the primary order is triggered. Once it's triggered, these will become active. If the market actually fails right now and touches the sell stop limit before it hits the buy one stop intercept order, nothing would happen. This order would not be filled, so we need this order to trigger for entry before the sell limit and the sell stop are triggered.

Then we have an OCO order at that point. Once the order is triggered and we're in the market for the long position, if the sell limit order is triggered, it will automatically cancel the sell stop. If the sell stop is triggered, it will automatically cancel the sell limit.