Advanced options allow th user to get much more
out of Computer-assisted Trading:
1. Reverse order entry:
In the above example, A might have outperformed D by 3% and the order
executed.
By using the Revers order feature a new order is automatically entered at the
same conditions:
Sell A and buy either B, C, D or E at 3% savings
This without any intervention, each time taking advantage
of the random short-term movements of the securities involved.
2. Trailing stop:
The trailing stop is a fantastic feature that automatically delays the
moment of execution if the Actual Savings continues to rise after trading
conditions are met.
Suppose you want to sell 100 IBM and buy 400 Cisco at 3%. You enter a trail of
10%.
Let us then assume that conditions are met and the 3% Requested Savings are
reached. With a Trailing Stop CAT will not execute the order, but instead will
continue to follow the order and execute only when and if the Actual Savings
drops below 2.7% (which is 3% Requested Savings minus 10% of the Requested
Savings).
Execution only takes place when Actual Savings drop below the Trailing Stop.
Example.
This feture is made for CAT and we strongly adivse investors to take advantage
of its features every time an order is entered.
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