Signal Rules Stoxxo Intelligent Trading Bridge

Depending upon user requirements, there can be multiple permutations and combinations which need to
be taken care while processing for the signals. Users can use below options to handle signal processing
as per his requirements.

  1. Cancel Previous Open Signal
    Meaning: LE / SE Cancels open orders from Previous LE / SE Signal :

This rule can be used to manage Open / Trigger Pending previous orders.
An LE signal received for Limit Order, bridge placed the same with provided price and this order
left open due to pending price. Now when a new LE signal is received by the bridge (which can be
at a more opportunistic price), the bridge will cancel the previous open LE Limit order.
Example

  1. LE Signal came for ACC at the Limit Price of 1100, but the price of the stock kept moving
    higher and didn’t come back to 1100 and the order left open.
  2. Now after some time another LE signal generated for ACC at 1105 whereas the previous
    order was still open.
  3. If this option is ticked, then it will cancel the previous order automatically and place a new
    order with a price of 1105/-.
  4. Stop & Reverse
    Meaning:- LE / SE Cancels or Exits open orders from Previous SE / LE Signal and Place a
    new Order for additional quantity:
    ➢ If Stop & Reverse is Tick
    Stop and reverse orders are effectively an extension of stop-loss orders. They’re used when
    a trader wants to quickly reverse his position. For example, if a trader is in a long trade and
    he wants to exit that long trade and enter a short trade at the same price, he would use a
    stop and reverse order.
    This rule handles the situation where a reverse order came without any exit order. Now in
    this case it is advisable that this reverse order can be treated as the exit order.
    However, In cases it is possible that the user may want to take a bigger reverse position, so
    in this case bridge will first exit / cancel the first order and then place an additional order for
    the remaining quantity.
    Key Points for Stop and Reverse
    ● This cannot be used with Scale-In Strategies. Example if a LE signal came with 100
    Qty and then the next signal is again coming as LE for additional 50 Qty which means
    you want to Scale-In your positions.
    ● Cancel Previous Open Order will work with Stop and reverse. As in the above
    example, if the previous LE order was still open then the system will cancel the
    previous open order and then Place the New Order. If the previous order was already
    executed, then this signal will be rejected.
    ● Stop and Reverse strategy never expects any exit signal (LX or SX). Any exit signals
    would be rejected by the bridge. However if you wish to exit the previous position, still
    you can send the same Quantity reverse signal. Example If first signal came as LE
    with 100 Qty then you can send SE with 100 qty to exit previous.
    Example of Stop and Reverse
    Bridge placed a Long Entry (LE) order with quantity of 100 on LE signal, Now this order is
    waiting for getting triggered, pending for limit price, or completed and waiting for target /
    stoploss.
    Now a Short Entry (SE) order came with a quantity of 150 where the previous LE Order was
    still open.
    If this option is selected then Bridge will first Exit / Cancel the existing Long Order
    and then place a new Short (Sell) order for the remaining 50 Quantities.
    Bridge can handle this situation even in cases of BO and CO Orders. However if
    reverse order is coming with the lesser quantity, then BO and CO are not the
    appropriate choice. Eg LE came with 100 Qty and SE came with 50 Qty only.
    ➢ If Stop & Reverse is UnTick
    If Stop & Reverse is Untick, Then Bridge will follow the default Signal Processing behaviour.
  5. Default Signal Processing Behaviour
    Applies when Stop & Reverse is UnTick.
    Each order has a life cycle which includes entering into Order and then closing that order meaning
    cancelling / Exiting that. In Stoxxo- Intelligent Trading Bridge Order can be closed using two ways, by setting the Stop Loss and
    Targets or By Calling the Exit Signals (LX, SX).
    In the bridge, Target and Stop loss either can be set under Symbol Mapping or can be provided
    with function calls. Possibilities explained in details:
    1) Targets & Stop Loss with Bracket Order
    Bracket orders are directly placed into a related broker with provided Target and stop loss.
    a) Strategy Not Firing Exit Signals :
    If your strategy is not firing any exit signal, still that order would be taken care by the
    broker and that will be exit on target or stop loss hit.
    b) Strategy Firing Exit Signals :
    Your order is already placed with target and sl, still if your strategy fires an exit
    signal for this type of order, the bridge will immediately exit the BO order.
    If Exit order fired after SL, Target hit, then that signal would be processed as
    ignored.
    2) Target and Stop loss for any order where broker providing feed
    As data feed is available from the broker, bridge can monitor for Targets and Stop losses
    for all types of orders including CO and MIS orders.
    a) Strategy Not Firing Exit Signals :
    If your strategy is not firing any exit signal, still bridge will monitor for target and stop
    loss and exit the order as per symbol mapping.
    b) Strategy Firing Exit Signals :
    Bridge is already monitoring your order for target and sl, however, still if your
    strategy fires an exit signal, then bridge will immediately exit the related position.
    If Exit order fired after SL, Target hit, then that signal would be processed as
    ignored.
    3) Target / SL wasn’t set or Broker Not providing feed.
    This is the case where your strategy must care for exit order and exit signals should be
    sent as per your requirements. Order would be kept open until any exit signal came up.
    a) Strategy Not Firing Exit Signals :
    In this case your order would remain open until Square off time. If Square off time
    wasn’t set then your MIS / IntraDay orders would be squared off by the broker as
    per their rules.
    b) Strategy Firing Exit Signals :
    On the exit signal, Stoxxo will immediately exit the related position.

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