Comment on Bracket Orders & Trailing Stoploss (SL)

Sougata Mandal commented on 12 Jun 2014, 10:41 AM

Hi Nithin,

I am one of your Zerodha Clients. I think you might have missed my yesterday’s post, so I am again writing to you…

First of all I want to thank you for introducing Bracket Order. This is really awesome. But I am little bit worried about the handling of multiple orders in case of trading large quantities (like few other traders mentioned here). Please do not take this as my complaint against your product. We all know this Bracket Order is an revolutionary introduction from your side. I just want to mention few points.

1. Suppose we are buying 500 quantities of any future contract and the order gets executed in 8 different trades, then there will be 8 different SELL (SL) orders and another 8 different SELL (Profit Target) orders. It’s ok, no issue upto this and this concept is really helpful for managing risk.

2. But now if we want to modify the profit target at some point in time and want to exit the trade quickly (not using EXIT option), then we will have to modify it 8 times for 8 different SELL (Profit Target) orders and this is really time consuming and I am little bit worried about this. This is where the handling of multiple orders is becoming painful. The same problem will arise if someone wants to modify the SL price, then he or she will have to modify it 8 times for 8 different SELL (SL) orders.

3. But if this modification of pending orders (like modifying the Profit Target price or SL price) can be done from one place and the modification gets reflected in all the corresponding pending orders, then this issue could be resolved without affecting the inherent logic of Bracket order. Lets take the above example where we want to modify the Profit Target Price for entire 500 quantities. Now if we can make modification from one place (there can be an option of “MODIFY ALL” or something like that) and the target price gets modified automatically for all the 8 pending Profit Target Orders, then traders can save some valuable seconds at there end. And this would not even affect the logic of Bracket Order (i.e for every executed order there must be one SL order and one Profit target order).

I earnestly request you to please look into this and if you can take my point number 3 into consideration, then it will be really helpful. Thank you very much. Will be eagerly waiting for your valuable reply on this.

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