Global Profit/Loss Management


Introduction

The Global Profit/Loss Management feature is a feature to flatten/close all of the existing Trade Positions for the currently open Charts or Trade DOMs for a Trade Account when certain defined Profit or Loss conditions are met.

This feature works with both non-simulated trading and simulated trading.

This feature is meant for day traders who carry no overnight positions in their trading accounts.

For non-simulated trading, this feature only works when connected to the market data feed and trading server (File >> Connect to Data Feed ).

This feature has the capability to send market orders to flatten all existing Trade Positions for the symbols that have open Charts or Trade DOM windows for, in any of the Trade Accounts for the Username that you are currently logged into your Trading Service with. It needs to be used with caution. It is important that you fully understand how the functionality works.

This feature has no guarantee it will work as expected because it has a dependency on the Daily Net Profit/Loss calculations which could be incorrect due to invalid or incomplete fill data or pricing data.

The Daily Net Profit/Loss value is determined by adding together, for each Trade Account separately, the Open Profit/Loss values with the Daily Profit/Loss values for all of the Charts and Trade DOMs listed on the Trade >> Trade Activity Log >> Trade Stats for Charts tab. This is calculated separately for each Trade Account being used. A Chart or Trade DOM with the same Symbol and Trade Account as one already listed, will not be listed on the Trade Stats for Charts tab more than once.

Refer to Open Position Profit/Loss for information about how this is calculated.

For an explanation of how Daily Profit/Loss is calculated and possible inaccuracies with it, refer to Help With Daily Profit/Loss Value.

Therefore, this feature should only be used with the full understanding of how it works.

It is recommended that Global Settings >> General Trade Settings >> Number of Days to Save in Trade Activity Log >> Non-Simulated Fills be set to at least 10.

This feature must not be relied upon when orders are entered outside of Sierra Chart. It should only be used when orders are entered from within Sierra Chart. This is so that the handling of orders, fills and the determination of the Profit and Loss is done in a known and stable environment. Sierra Chart also needs to be running at all times and connected to the Trading service when using this feature for it to be able to work.

Functional Description

The Global Profit/Loss Management feature is separated into two categories.

The first category flattens Trade Positions which exist for the symbols which have open Charts or Trade DOMs, based upon certain rules relating to the global Daily Net Profit currency value. The Daily Net Profit is calculated only for the symbols which have open Charts or Trade DOM windows. It is calculated separately for each Trade Account.

The second category flattens Trade Positions which exist for the symbols which have open Charts or Trade DOMs, when the specified global Daily Net Loss currency value has been reached. The Daily Net Loss is calculated only for the symbols which have open Charts or Trade DOM windows. It is calculated separately for each Trade Account.

To use this functionality, select Global Settings >> Global Profit/Loss Management.

If you want to have Trade Positions flattened when certain Profit rules are met, then enable the option Flatten Positions When Profit Rules Met. Refer to the Control Descriptions section for information about the controls related to the Profit rules, in order to set those appropriately.

If you want to have Trade Positions flattened when certain Loss rules are met, then enable the option Flatten Positions When Loss Rules Met. Refer to the Control Descriptions section for information about the controls related to the Loss rules, in order to set those appropriately.

When the Trade Positions are flattened because of the Global Profit/Loss Management settings, then a message is added to the Trade Service Log indicating this.

When the Trade Position is flattened for a particular Symbol and Trade Account because of the Global Profit/ Loss Management settings, the working orders, if any, for the Symbol and Trade Account are also canceled.

Once the loss rules have been met for a particular Trade Account during a day and the Trade Positions for the symbols which have an open Chart a Trade DOM have been flattened, then this feature to flatten Trade Positions when a Daily Net Loss value is reached, is then disabled until the next day. A day is defined as 00:00:00 to 23:59:59 in the Time Zone Sierra Chart is set to.

However, when Sierra Chart is restarted, the day that the Trade Positions were flattened is not remembered and they can be flattened again on that same day if Global Loss Management is active. By default it will be disabled on a restart.

Control Descriptions

Daily Net Profit Management

Daily Net Profit Management >> Flatten Positions When Profit Rules Met

Enable this option to cause all Trade Positions to be flattened when the profit rules are met. Each currently used Trade Account is tracked separately. So the profit rules are calculated separately for each account.

When Sierra Chart is restarted, this option is automatically disabled for safety reasons unless the Disable Global Profit/Loss Management on Startup is unchecked.

Daily Net Profit Management >> Profit Trigger Value

This is the Daily Net Profit as a currency value which has to be met in order for the Daily Net Profit Management >> Profit Value After Trigger To Flatten Positions value to go into effect.

Daily Net Profit Management >> Profit Value After Trigger To Flatten Positions

After the Daily Net Profit Management >> Profit Trigger Value has been met, then the Profit Value After Trigger To Flatten Positions value goes into effect.

When the Daily Net Profit/Loss value is less than or equal to Profit Value After Trigger To Flatten Positions, then all Trade Positions for the Symbols for the Trade Account being monitored which have open charts or Trade DOMs will be flattened by the sending of market orders.

When this is set to 0, then this means a currency value of zero. So what this means is that after the Profit Trigger Value has been met, the Daily Net Profit/Loss has to go to zero or lower before the current Trade Positions for the Trade Account will be flattened.

If you want the Trade Positions to be flattened when the Daily Net Profit Management >> Profit Trigger Value is triggered, then set Profit Value After Trigger To Flatten Positions to at least twice greater than the Profit Trigger Value.

Daily Net Profit Management >> Trail Daily Net Profit >> Enable

When this option is enabled, then Profit Value After Trigger To Flatten Positions will be increased by the Increase Profit Value After Trigger to Flatten Positions By amount when the initial Profit Trigger Value has been met and the Daily Net profit increases by the amount specified with After Trigger When Daily Net Profit Increases By.

Any time there is a change to Profit Value After Trigger To Flatten Positions when Trail Daily Net Profit has been enabled, then this will be logged in the Trade >> Trade Service Log.

Also the current Profit Value After Trigger To Flatten Positions value will be displayed in the Status box below the Daily Net Profit Management frame in the Global Settings >> Global Profit/Loss Management window. Example: P/L <= for Flatten: 100.0.

Daily Net Profit Management >> Trail Daily Net Profit >> After Trigger When Daily Net Profit Increases By

When the Profit Trigger Value has been reached, and the Daily Net Profit increases by the amount specified for the After Trigger When Daily Net Profit Increases By setting, then the amount specified with the Increase Profit Value After Trigger to Flatten Positions By setting, will increase the Daily Net Profit Management >> Profit Value After Trigger To Flatten Positions currency value.

If the Daily Profit increases by a multiple of After Trigger When Daily Net Profit Increases by , then the Increase Profit Value After Trigger to Flatten Positions By is increased by that same multiple.

So for example, if After Trigger When Daily Net Profit Increases by is set to 25 and Increase Profit Value After Trigger to Flatten Positions By is set to 25, then when the Daily Net Profit increases by 50 at one time which is a multiple of two, then the profit value to flatten the Positions will also be increased by a multiple of two which would be 50 in this case.

Daily Net Profit Management >> Trail Daily Net Profit >> Increase Profit Value After Trigger to Flatten Positions By

Refer to the description for After Trigger When Daily Net Profit Increases By.

Daily Net Profit Management >> Status

This is a text display reporting on the current status of the Daily Net Profit Management feature.

When you have just enabled the Flatten Positions When Profit Rules Met option, the status will not be displayed in this text display until you press OK and reopen the Global Profit/Loss Management Settings window.

Lock Trading (Global Settings >> Global Profit/Loss Management)

Lock Trading >> Lock After Positions Flattened

When Trade Positions are flattened from the Daily Net Profit Management, Daily Net Loss Management, or the Flatten Positions at Set Time features, then trading can be locked for a period of time.

Enable this option to lock trading after the Trade Positions are flattened.

When trading has been locked after the enabled and specified rules have been met, and you need to perform some trading operation like canceling orders or entering a new order for some reason, this can be accomplished by disabling this option (Global Settings >> Global Profit/Loss Management >> Lock Trading >> Lock After Positions Flattened ).

When this option is disabled you can then perform trading operations so long as Trade >> Trading Locked is unchecked.

Lock Trading >> Lock Time In Minutes

This specifies the trading lock time in minutes. After this time has elapsed, trading will be possible.

If you need to enter an order when trading is locked, it is necessary to uncheck the Lock After Positions Flattened option.

Lock Trading >> Lock for Day

When the Lock for Day option is enabled, then Lock Time In Minutes is ignored. Trading is locked for the entire day. A new day is considered to begin at 00:00:00 according to the global time zone setting.

If you need to enter an order when trading is locked, it is necessary to uncheck the Lock After Positions Flattened option.

Lock Trading >> Remaining Lock Time

This control displays the remaining lock time if trading is currently locked as the result of this feature.

Daily Net Loss Management

Daily Net Loss Management >> Flatten Positions When Loss Rules Met

Enable this option to cause all Trade Positions to be flattened when the Loss Trigger Value has been met. Each currently used Trade Account is tracked separately. So the Profit/Loss is calculated separately for each Trade Account being used.

When Sierra Chart is restarted, this option is automatically disabled for safety reasons unless the Disable Global Profit/Loss Management on Startup is unchecked.

Daily Net Loss Management >> Loss Trigger Value

This is the Daily Net Loss which needs to be reached for the current Trade Positions to be flattened. It is entered as a negative number.

Daily Net Loss includes the Profit/Loss for all currently open Trade Positions and closed Positions for the trading day for a particular Trade Account. For more information, refer to Help With Daily Profit/Loss Value.

As an example, if you want to have the currently open Trade Positions flattened when the Daily Net Loss is -500 or higher in the account currency, then enter -500.

Daily Net Loss Management >> Trigger Date

The Trigger Date box displays the date the Trade Positions were flattened for a Trade Account.

This is reported separately for each account being used in the trading Charts and Trade DOMs. The accounts are iterated through every five seconds. Therefore, this changes every five seconds if there are multiple Trade Accounts used among the open Charts and Trade DOMs.

Daily Net Loss Management >> Reset

When the Trade Positions for a Trade Account are flattened, the Daily Net Loss Management is disabled until the next day. A day is defined as 00:00:00 to 23:59:59 according to the Time Zone setting in Sierra Chart.

The date that the Trade Positions were flattened on is remembered for each Trade Account. This date is saved when Sierra Chart is exited and restarted.

This date for a particular Trade Account is displayed in the Daily Net Loss Management >> Trigger Date box.

To reset these dates back to zero to allow the Daily Net Loss Management to be used again for all of the Trade Accounts in the same day, press the Reset button.

Daily Net Loss Management >> Status

This is a text display reporting on the current status of the Daily Net Loss Management feature.

This is reported separately for each account being used in the trading Charts and Trade DOMs. The accounts are iterated through every five seconds. Therefore, this changes every five seconds if there are multiple accounts.

When you have just enabled the Flatten Positions When Loss Rules Met option, the status will not be displayed in this text display until you press OK and reopen the Global Profit/Loss Management Settings window.

Disable Global Profit/Loss Management on Startup

When this option is enabled, the default, then upon starting of Sierra Chart, the Daily Net Profit Management >> Flatten Positions When Profit Rules Met and the Daily Net Loss Management >> Flatten Positions When Loss Rules Met options will automatically be disabled preventing the corresponding functionality from working.

When this option is disabled, then the Daily Net Profit Management and Daily Net Loss Management features will remain enabled/checked if they already are enabled when Sierra Chart is started.

Flatten Positions at Set Time

The Flatten Positions at Set Time functionality will flatten/close all of the existing Trade Positions for the currently open Charts or Trade DOMs when the specified time has been encountered.

If there is a current nonzero Trade Position quantity for a particular Symbol and Trade Account, and there are also open orders, those open orders will also be canceled. If there are only open orders for a particular Symbol and Trade Account but the Trade Position quantity is 0, then those orders will still remain and not be canceled.

To use this feature, enable the Flatten Positions at Set Time >> Enabled option, and set the Flatten Time. The Flatten Time format is Hours:Minutes:Seconds in a 24-hour format. The time is relative to the global time zone setting.

Clearing of Profit/Loss Management Data for Simulated Accounts

Once the Daily Net Profit Management or the Daily Net Loss Management functions have flattened Trade Positions and canceled open orders for a particular Trade Account, that action will not occur again on the same date.

In the case of the Daily Net Loss Management the Net Loss Management >> Reset button will clear/reset the dates that the Trade Positions were flattened on for all of the Trade Accounts. Therefore, Daily Net Loss Management can function again on the same day. This does not apply to Daily Net Profit Management.

When Trade >> Clear Trade Simulation Orders and Data is selected, all of the Profit/Loss management data for all simulated trade accounts is cleared. Which will allow the Daily Net Profit/Loss Management functions to perform again on the same day.

When starting a chart replay, and you press the Yes button to clear the simulated trade data for the Symbol and Trade Account, then the Profit/Loss management data for that particular Trade Account is also cleared allowing the Daily Net Profit/Loss Management functions to perform again on the same day for that particular Trade Account.


*Last modified Thursday, 14th September, 2017.