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What should happen when short and long signals fire at the same time?

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bentra

Customer, bbp_participant, community, sq-ultimate, 22 replies.

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4 years ago #245931

At least 5% of strategies from builder will fire longs and short signals simultaneously and actually more than 5% if we include strategies with the long signal = always true and short signal = always true logic.

I’m curious what people think should be happening with the orders when this occurs.

In a LIMIT or STOP order scenario which is your preferred option?
1.just place both stop or limit orders if possible and let them play out by the rules normally.
2.place no orders at all until only one of the signals is true.
3.discard the short signal and only place the long signal because most markets have a long bias. <–this is currently how SQX operates
4.they’re all bugs, longs and short signals should never overlap in the first place so fix the bugs.

Same question for MARKET orders.
1.place both buy and sell orders if possible resulting in a temporary hedge and let them play out by the rules normally.
2.place no orders at all until only one of the signals is true.
3.discard the short signal and only place the long signal because most markets have a long bias. <–this is currently how SQX operates
4.they’re all bugs, longs and short signals should never overlap in the first place so fix the bugs.

May all your fits be loose.


https://www.darwinex.com/darwin/SUG.4.2/

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