101 trades were issued in 2017-20
only 4 red
Not Executed Options Order
What to do in the rare case that a position was opened according to a signal but the order was not executed?
There could be two situation when a trade may not be executed:
- A trader missed our signal and did not placed an order;
- An order was placed, but there were not enough options contracts offered to fill the order.
In first case a trade who made a decision to follow our trading system may decide to initiate a trade on the next trading session (if the signal was not closed on the same day). In this case this trader may use following rules:
- Place an order to open a trade if the same "Suggested Entry" price or better price is available for specified in signal options contracts.
- Considered placing an order to open an options trade when "Suggested Entry" price is not available but the market price for specified in signal options contracts is still far from the "Suggested Exit" price. For instance: if a signal states $1.60 as "Suggested Entry Price" and $1.20 as "Suggested Exit Price" and the signal is followed, investors can sell short at $1.55 and buy to cover at $1.25 (only $0.05 difference) resulting in 19% profit instead of 25% profit. This would provide less profit, but would allow participation in the move.
- Wait for a new signal when the market price for specified in signal options contracts is close to the "Suggested Exit" price.
- Otherwise, investors could cancel all limit orders after our trading system went into the position and wait for a new signal.
In second case, a trade may simple wait when the market gives the "Suggested Entry" price, or open a trade at the market price (market order) after we issue a conformational email-alert where we state that position is opened.