Available translations

Manage Stage

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The manage stage deals with the setting and management of stop loss and take profit targets, both to protect your capital and to increase the efficiency of your trading system.
Content
Optionality
This is how optionality looks like at the code: 
 /* Opening Status Procedure */
if (tradingEngine.tradingCurrent.strategyManageStage.status.value === 'Opening') {
    /*
    The system allows the user not to define a Manage Stage, because the Manage Stage is optional.
    Here we are going to see if that is the case and if it is, we will inmidiatelly consider 
    the Manage Stage as closed.
    */
    if (tradingSystem.tradingStrategies[tradingEngine.tradingCurrent.strategy.index.value].manageStage === undefined) {
        changeStageStatus('Manage Stage', 'Closed', 'Manage Stage Undefined')
        changeStageStatus('Close Stage', 'Opening')
        return
    }

    /* Now we switch to the Open status. */
    changeStageStatus('Manage Stage', 'Open')
}
Manage Stage Concept
The first and foremost rule of trading is to preserve capital and its main goal is to increase it.
Conceptually, a position is not an instantaneous event, but an event which has an opening, a period of maturation, and a closing. The management of the position happens throughout the process.
The concept of managing the position refers to the fact that the formulas that determine the take profit and stop loss targets may change as the position develops. A typical situation in which you may want to change your original take profit and stop loss formulas is when the position seems to be developing well in your favor.
It may be in your best interest to manage the stop loss, moving the target in the direction that would help protect unrealized profits. It may also be in your interest to move the take profit target to extract a larger profit than originally expected. Or you may wish to set up a mechanism that closes the trade as soon as a certain market situation materializes.
The management of take profit and stop loss is done independently of each other, in phases. Therefore, each concept has its own set of management phases.
Each phase has its formula to describe the corresponding target. Users may define situations in which the current phase shall be abandoned and a different phase—with its formula—shall be implemented.
Keep in mind that the position is in constant development, so there may be as many phases as you deem appropriate for your particular strategy.
The idea of managing targets in phases derives from the notion that big market moves tend to provide clues as to what may come up next. For instance, rallies may accelerate as more traders join the move. Recognizable patterns may emerge. Signs of exhaustion may be identified.
All of these considerations may feed the dynamic analysis performed in each phase as the position develops.
Upon execution, the system verifies if the current candle has tagged either of the targets. If—or when—it does, the close stage kicks in and closing execution begins.
It is crucial to understand that Superalgos does not place orders to close a position until the stop loss or take profit targets are hit. That is, stop loss and take profit are not orders sitting at the exchange waiting to be filled at a certain rate. Instead, Superalgos keeps track of targets internally, and places the orders at the exchange during the execution cycle in which it detects either of the targets has been hit.
This behavior has advantages and disadvantages, but it was designed as is because the former outweigh the latter.
By not placing stop or take profit orders at the exchange, Superalgos keeps your targets—and the underlying strategy—secret. This guarantees that such a crucial piece of information may not be used against you by the exchange itself or any third party that may have access to privileged information.
On the other hand, not placing a stop order in advance may occasionally cause relatively more slippage, for instance, in cases of massive flash market moves.
Manage Stage Menu
The Manage Stage node has the following Node Menu items:
The Add Missing Items menu item has the following properties:
  • action: Add Missing Children
  • label: Add Missing Items
  • relatedUiObject: Manage Stage
  • actionFunction: payload.executeAction
  • actionProject: Visual-Scripting
  • relatedUiObjectProject: Foundations
The Add Announcement menu item has the following properties:
  • action: Add UI Object
  • label: Add Announcement
  • actionFunction: payload.executeAction
  • relatedUiObjectProject: Social-Bots
  • actionProject: Visual-Scripting
The Delete menu item has the following properties:
  • action: Delete UI Object
  • actionProject: Visual-Scripting
  • askConfirmation: true
  • confirmationLabel: Confirm to Delete
  • label: Delete
  • iconPathOn: delete-entity
  • iconPathOff: delete-entity
  • actionFunction: payload.executeAction
Manage Stage Children
The Manage Stage node has the following childrenNodesProperties:
The Managed Stop Loss node property features the following properties:
  • name: managedStopLoss
  • type: node
  • autoAdd: true
The Managed Take Profit node property features the following properties:
  • name: managedTakeProfit
  • type: node
  • autoAdd: true
The Announcements node property features the following properties:
  • name: announcements
  • type: array
  • project: Social-Bots
The User Defined Code node property features the following properties:
  • name: userDefinedCode
  • type: node
  • autoAdd: false
Manage Stage Attaching Rules
The following are the Node Attaching Rules that govern the attachment of Manage Stage with other nodes:
Compatible Types: