Dynamic Entry Limit Price

How to set a dynamic limit price that adjusts according to the market conditions at the time of the trigger

Josh avatar
Written by Josh
Updated over a week ago

As a measure of control, the majority of traders set their entry limit price based on a nominal amount. For example: "Buy 10 TSLA at 1000$". However, with Capitalise.ai you can set a dynamic limit value based on a variety of parameters. The final limit price will be determined by the value of your defined parameters when the strategy triggers for entry. For example, set the entry limit price to equal a moving average value at the time the entry was triggered.

The Operation

When a strategy contains a dynamic limit trigger, a limit order will be sent to your trading account with a limit price that is equal to the value of your defined parameters at the time of the trigger.

In order to add a dynamic limit to your strategy, simply add “at” or “at LMT of” after the strategy action.

For example:

The strategy will send a limit order equal to 5% below the previous 15m bar close of BTC/USD PERP FUTURE.

Then, the strategy will wait for the order to be executed by the broker, meaning that as long as no prices match this (limit) order at the broker, the order will wait to be executed. Therefore you will see "WAITING FOR EXECUTION" status that will last as long as this order is pending at the broker.

As you can see, the log will specify that it is waiting for execution and has sent a limit order. The strategy will not take further steps (looping in, looking for an exit, etc.) until this order is executed.

The other log will also show you the number of units and the limit price it has sent (disregard the numbers in this example):

Note that the dynamic entry is available for entry strategies only. It is not available for exit strategies, as limit orders are not available on exit.

Usability and Examples

In this example, we have set the conditions based on EMAs crossing. The limit price should be specified separately, right after the "at." You can reference the price of a bar, an indicator, and even time. Here we have ordered the platform to enter the position (buy/sell) based on the EMA crossing, while the limit price will be determined by the high price of the previous 1m bar at the time of the trigger.

Few things to watch here:

  • "At" means the equal price or below (=<) in case of long, and above (=>) in case of short. If there are insufficient trades in the market to fulfill the orders, only part of the order will be executed.

  • The bars are calculated after they are closed, meaning that the price of execution will be set based on the previous candle at most.

  • There can only be one dynamic entry per (entry) strategy.

Another example is specifying it is a limit order. Whether "limit/LMT" is specified or not, "at" will send a limit order to the broker.

In addition, you can set the dynamic entry price to a specific distance (in percentage) from any indicator. For example:

As we constantly encourage our traders – be creative! This feature opens up a lot of new possibilities; explore and test them to perfect your strategies.

This content is intended for informational and educational purposes only and should not be considered investment advice or investment recommendation. Read more here.

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