| |
 |
 |
|
| |
|
|
| |
Glossary
|
|
| |
Terms used by StrategyBot software
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
-
Ask : Market maker's price to SELL. Also known as an "Offer". A two-way price comprises the Bid and Ask. The difference between the 2 quotations is a Spread.
-
Bar Chart : Represents Price information on a vertical bar. The Top of the bar is the highest price and the bottom the lowest price. A dash on the left hand-side denotes the opening price, where a dash on the right side denotes the closing price.
-
Bid : Market maker’s price to BUY. A Bid is always below the Ask. The spread between the best Bid and the best Ask is called “The Touch”.
-
Bollinger Bands : Indicator used for Technical Analysis. Lines plotted one Standard Deviation above and one STD below the Moving Average of the Market. A Standard Deviation measures Price Volatility so these Bands narrow and widen in line with volatility (narrow in calm markets, widen in volatile markets). The narrowing often indicates the start of a new trend, which is confirmed when Prices break and close out of the Band.
- Bracket : Values of at which you will transform your order into money. The difference between its values (Limit - Order) in a BUY for a WIN, or (Order - Stop Loss) in a BUY for a LOSS, or (Order - Limit) in a SELL for a WIN or (Stop Loss - Order) in a SELL for a LOSS, all define the Bracket within which your trade will operate. So Limit, Stop Loss, Scale Out and Auto Trailing Stop are all contributing to a Bracket order.
^Back to top
-
CBOT : The Chicago Board of Trade is the world's oldest futures exchange and specialized in financial and agriculture futures. www.cbot.com
-
CCI : The Commodity Channel Index, is used primarily to identify beginning and ending of cycles in futures markets and is commonly used to identify buy and sell opportunities. The CCI is calculated so that 70-80% of all price activity falls between +100 and -100 on its vertical scale. Many analysts believe a long position is indicated when the CCI exceeds +100 while a short position is indicated when the CCI falls below -100 but these values should be based more on your market analysis.
For example, you may decide that for the market you are evaluating, a -125 indicates taking a short position while a +150 indicates taking a long position. Many analysts also use this indicator to signal overbought and oversold markets, much like an oscillator. Breakouts above the CCIlong line indicate an overbought market and breakouts below the CCIshort line indicate an oversold market. The CCI often misses the early part of a new move because of the amount of time it spends in the neutral position. Many analysts believe the CCI Average crossing above or below zero identifies market conditions.
Charting : used in Technical Analysis, charting is a set of techniques helping traders to plot volume, price movements, price settlements and other indicators to anticipate next price movements.
-
Clearing House : An administrative centre of a Market through which transactions are cleared with the exchanges. The Clearing Houses are the last intermediate entity in the process of trades. Each Clearing House carries specific rates for transactions fees and margins per Contract, even if the exchanges set a standard value for each Contract. The Clearing Houses manage the trader's bank account in direct electronic relationship with the bank into which the trader's investment has been deposited. Clearing House control how many Contracts and lots per Contract each Portfolio may afford, and control the margins left available for further trades. If not enough money is invested or is left in the account, the Clearing House may issue a Margin call, informing the trader of a risk of blocking the account against further trades.
-
Closing a Position : The delivery of commodities against a Future Contract. The offsetting of a long or short position by making an offsetting trade in the other direction. A trader closes a short position by buying or close a long position by selling it.
-
CME : The Chicago Mercantile Exchange was the 1 st Futures Exchange to trade Financial Futures. It specializes in short-term interest rates Futures and Currency Futures. www.cme.com
-
COMEX : Commodity Exchange Inc. a New York Exchange that trades mostly in Metal Futures. www.nymex.com
- Cover : The action to set up your Exit Style after your Order has been placed.
^Back to top
-
Exit Style : After the fact values at which you wish to close your order. The Limit, Stop Loss, Auto Trailing Stop or Scale Out parameters can either be defined before placing your order or after having placed your order. It is sometimes better to BUY or SELL first to take advantage of either its low or High Market present values, then set up your Exit Style later on. It is in any case advisable to prepare or in other word automate your order in anticipation of placing an order. If the Exit Style is entered after the original order you would " Cover" your order by deciding upon an Exit Style.
-
Limit : Abbreviation for “Limit Order” in the Market Pane. To place a Limit the fastest way possible, Click on LMT, then click on the value above your SM value on the right side of the Pane for a Limit value with a BUY or click on the left side of the Pane below your SM value for a Limit with a SELL.
- LMT : Abbreviation for "Limit Order" in the Market Pane. To place a Limit the fastest way possible, Click on LMT, then click on the value above your SM value on the right side of the Pane for a Limit value with a BUY or click on the left side of the Pane below your SM value for a Limit with a SELL.
^Back to top
-
MACD : Moving Average Convergence Divergence. Indicator helping a trader placing an initial order. This is a mathematical calculation providing 2 exponential moving averages of the lengths specified by the inputs "Fast Len" and "Slow Len". The difference between these two averages is then plotted as the MACD. When the MACD crosses above the MACD Average, an uptrend may be beginning, indicating a buy signal. Conversely, when the MACD crosses below the MACD Average, a downtrend may be beginning. As an Oscillator, the MACD can signal overbought and oversold conditions.
-
Market : Lot value of the market. If the value of the Market is above your BUY order, you are winning, otherwise you are losing. It is opposite for a SELL order, if the value of the Market is below your Order you are winning, otherwise your are losing. In either cases, BUY or SELL, upon reaching the Stop Loss value that will be the confirmation of your Loss amount.
- MIT : Abbreviation for “Market If Touched”. Value at which your order will be placed upon the market reaching. An MIT needs to be set for either a BUY or a SELL. A SELL order is best placed close to the Support level, where a BUY is better placed near the Resistance level. In other words, for Intraday orders, better to BUY at the low of the day, and better to SELL at the High of the day as long as neither are at the values of the Close for the day!!!
^Back to top
-
OCO : One Cancels the Other. A Limit order consisting of two BUY orders (or two SELL orders) placed at levels either side of the current market value. The execution of one order automatically cancels the other.
Example : You BUY at 4000, set a Limit at 4100, and a Stop Loss at 3980. Upon the market reaching either one 4100 or 3980, the other will be automatically cancelled. Without an OCO, if a trader closes the order at Market value before reaching either orders, he risks to forget clearing these 2 pending orders, then a BUY or SELL may happen at the pre-defined and no longer wishing values. Being disciplined is the key here. An OCO avoids that risk.
- Offer : See "Ask". Same definition.
-
Point : Is the Dollar or Euro or British Pound value of one movement or one pip of the market. Its value differs for each Contract. One point of S&P Index Futures Contract is US$50.00 whereas for DAX index Futures it is €25.00. A Limit or Stop or Auto Trailing Stop can be set in number of Points while placing your order. If you place an order at 4000 and the point value is $10, in order to make US$100 you would need to set the Limit to 10 Points.
- RSI : Relative Strength Indicator used in Technical Analysis comparing the average strength of rises and falls. It is used to determine "Over Bought" or "Over Sold" signals. It calculates a value based on the cumulative strength and weakness of price, specified in the input Price, over the period specified in the input Length. For that number of bars, RSI accumulates the points gained on bars with higher closes and the points lost on bars with lower closes. These two sums are indexed, with the index plotted on the chart. The RSI plots as an oscillator with a value from 0 to 100. The direction of RSI should confirm price movement. For example, a rising RSI confirms rising prices.
RSI can also help identify turning points when there are non-confirmations or divergences. For example, a new high in price without a new high in RSI may indicate a false breakout. RSI is also used to identify overbought and oversold conditions when the RSI value reaches extreme highs or lows.
^Back to top
-
ScaleOut : The action to place your order from the same Market value but with different Limit values. A 2 Scale Out will generate 2 orders. A 3 Scale Out will generate 3 orders, all from the same ordering Market value. You may associate Lots value per Scale in addition to setting Limits.
Example coming soon.
-
SL : Abbreviation for “Stop Limit Order” in Market Pane. To place a Stop the fastest way possible, Click on SL, then click on the value above your SM value on the right side of the Pane for a Stop value with a BUY or click on the left side of the Pane below your SM value for a Stop with a SELL.
-
SM : Abbreviation for “Stop Market Order” value used in the Market Pane. To place an Stop order the fastest way possible, Click on SM, then click on the value on the right side of the Pane with a BUY order at the Market value you wish to stop or Click on the left side of the Pane for placing with a SELL order at the Market value you wish to stop.
- Stop : Value upon reaching it at which your trade will close if the market goes the opposite direction. A loss will happen upon reaching a Stop value. A Stop value will be set below the original BUY value, or set above the original SELL value. A Stop value can be modified up or down before reaching its value as long as you have the time to do it.
^Back to top
To be continued
|
|
|
