A question concerning algo trading and stop losses

AI & Machine learning
1

Hello there:



 I was wondering about something…Since you probably know… stop losses are market orders  that do not work outside regular trading hours (from 9:30 to 16:00 NYC), so I was wondering…



Since market makers see stop losses… and sometimes they manipulate the price to take traders out … is it possible to hide them??  what I mean… is it possible to write an algorithm that … sends for example a market order to sell a particular stock if the price goes below certain price??



How would you do that?? any suggestions??



Thanks



 

2

Hello Ghery,

If you want to sell a particular stock by sending a market order if the price goes below a certain price, this is similar to generating buy signals to enter. But the only change is, instead of scanning all stocks for the signal, you would only scan for exit signals at frequent intervals only for the stocks you have an open position.



Hope this helps!