Auto Liquidate

Here the feature creating automatically liquidate conditions is described.

Trading Conceiver can generate liquidate signals automatically. How to activate this feature is depicted and the algorithm implementing it is specified.

Create Liquidate Conditions Automatically

The Feature

A useful feature supported by Trading Conceiver is the capability to automatically generate the liquidate conditions. It is as if Trading Conceiver filled in the liquidate tabs for you.

The Rules

The rules to accomplish that are the following. The Long and Short tabs are filled in by the user. The liquidate signal is given whenever both the combined Long and Short tabs are false. Said another way, when they don't give any signal, to go long or short, the position is liquidated. So, as soon as there are no long or short signals, the position is closed.

Even with Only One Tab

This feature works even if only one of the two tabs, Long and Short, is filled in and the other is left empty. The one left empty is simply ignored.

Activate the Feature

The Checkbox

In order to activate this feature, you must select the checkbox:

  Liquidate if not long nor short

Both the liquidate tabs will be disabled, because they are ignored. Another effect is to disable the checkbox:

  Distinguish long / short

because everything is managed by Trading Conceiver.

In the Table

In the table showing the results, you can see the liquidate signals generated by Trading Conceiver. They are in the combined liquidate tab columns. They are the same for the Liquidate long and Liquidate short.

Details about the Implementation

Intraday and Non-Intraday

At Least One Operating Non-Intradaily

If one or both the Long and Short combined tabs operate only at Close, the liquidate signals will be given only at Close. Note that this holds true even if one of them operates intradaily and the other non-intradaily. This choice reflects the fact that only at Close the Long and Short combined tabs are both defined. It is the same reasoning of congruency within a tab.

Both Operating Intradaily

If, however, both the Long and Short combined tabs operate intradaily, the liquidate signals will be given intradaily. Actually, the signals will be given only at Open and Close, not at Threshold.

At Threshold

The liquidate never occurs at Threshold. This is for two reasons.

Predictivity

During the Threshold phase, we can not know whether the Long and Short combined tabs will always be false. This would be predictive; i.e. we would be able to look into the future. We know that only at the end of the Threshold phase, that is at close.

Ambiguity

If we defined the interval in which to liquidate as the complement of the Long and Short combined tabs, we would always be in an ambiguous case. As explained later, in the 'Building the System' section, if at Threshold there is both a long or short signal together with a liquidate one, what to do is ambiguous.

Miscellaneous

Stop Loss and Take Profit

Please note that even with this feature enabled, it still makes sense to define stop loss and take profit conditions, in the respective tabs. The stop loss and take profit give extra liquidate signals in this case. This extra signals are considered and managed by the disambiguate processing, explained in a future chapter. For now suffice it to say that for example if you have a long position opened and simultaneously:

  long = true
  stop loss = true

This is an ambiguous situation, because the signals are conflicting. Through a dedicated user interface you can decide what to do in cases like this, either liquidating or holding the position.