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Position Management Phases
Summary: You may manage a position using dynamic stop loss and take profit targets. Targets are dynamic in the sense that they are defined by formulas, which may change depending on defined market situations.
Foundations->Node->Phase->Definition
The management of take profit and stop loss targets is done in phases, each with their own formula that determines the target.
Foundations->Node->Phase->Content
Phase 1 sets the initial targets, either for the Managed Stop Loss or the Managed Take Profit, and becomes active as soon as the Take Position Event validates
true. Subsequent phases allows switching to different formulas given certain market situations. The default management of phases is sequential, meaning that phase 2 comes after phase 1, phase 3 comes after phase 2, and so on.
To switch from one phase to the next phase in the sequence, the Next Phase event is used. When the Situation described in the next phase event validates
true, the switch occurs and the next phase becomes the active phase. However, management does not need to happen sequentially. By using the Move To Phase Event instead of the Next Phase Event, the system may activate any other phase and not just the one next in the sequence.
Both events may be used at the same time, and whichever event is triggered first takes precedence.
Note: Notice that stop loss and take profit phases are independent and defined separately from each other, each below the corresponding managed stop loss and managed take profit nodes.
Note: The value of the target set for a phase is expressed by a formula. Learn more about formulas and how to write them.
Tip: This explanation about phase 1 may be extended to any other phase, as they all work similarly, and it applies both for managed stop loss phases and managed take profit phases.
Foundations->Concept->Reusable Snippets->Note for Hierarchy Tables
Note: This page discusses the top-level information about the section of the hierarchy represented in the below table. Click on any of the nodes to get the details, including particulars on their configuration, when applicable.
We will discuss formulas later on, together with situations and conditions.
Next Phase Event
Foundations->Node->Next Phase Event->Definition
The next phase event determines when there should be a switch of phases to the next phase in a predefined sequence.
Foundations->Node->Next Phase Event->Content
The management of a position is —by default—done in sequential phases, each phase with its formula. To move from one phase to the next, a situation you define must be validated.
When that happens, the next phase event is triggered, the current phase is abandoned, and the next phase is activated. From that instant on, the system evaluates the formula corresponding to the next phase.
The sequence of phases may be as long as the number of phases you choose to add and define. There may be unlimited numbers of phases.
Note: Events are triggered by situations, which are defined by conditions. Both are explained in the situations, conditions, and formulas page.
Tip: To set up a next phase event, add the node and define the situation that should trigger the event.
Move To Phase Event
Foundations->Node->Move To Phase Event->Definition
The move to phase event determines when there should be a switch of phases from the current phase to an arbitrary phase determined by a reference.
Foundations->Node->Move To Phase Event->Content
While phases are defined in a sequence and you may choose to manage the position by shifting from one phase to the next in the sequence, the move to phase event offers an alternative.
With the move to phase event, you may arbitrarily decide which will be the next phase. To do that, you must establish a reference from the move to phase event, to the phase that should be activated once the event is triggered.
Any number of move-to-phase events may be set up for each and every phase, allowing complete flexibility on how the position is managed. This feature allows setting up versatile position-management algorithms that may switch to different formulas back and forth, or in any configuration imaginable.
Note: A move-to-phase event must reference a phase node. When the situation in the move-to-phase event evaluates true the management shifts to the referenced phase.
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