Why trailing stop loss 20 ticks or 1 point minimum in case of bracket orders?

VenkateshV
@nitin @Kailash @sujith

Hi All,
I believe, I saw a discussion post placed somewhere in 2016, concluded with no decision at that point in time.

Now the time has changed and even you have bought a lot of innovations by bringing kite3 with exciting new features.

However it's still disappointing to see nothing being done on this minimum TSL on bracket orders.

being keeping TSL minimum of 1 (20 ticks), it makes impossible to trade on scripts when are less than INR 100 efficiently on Bracket orders.

I wanted to know whether have you pushed your OMS vendor for any updates on this? when this would be a reality?
  • nithin
    nithin edited December 2017
    @VenkateshV currently there is a restriction from our EMS/OMS (Execution/Order Management System) vendor Thomson Reuters. We can't set different ticks limit for different scrips.

    For Nifty/banknifty etc we have to set this to minimum atleast 1 point. If we dont', almost every tick on such scrips, there will be modification of order request sent to our EMS. Imagine if we had 10,000 bracket orders on Nifty with 0.2 points as trail. Nifty moves 0.2 points every tick, which would mean a load of 10,000 new modification of order requests every second. This can potentially choke the system.

    I know that because of this restriction of 1 point, you can't really use trailing SL on stocks of smaller value. We are working with TR to see if there is a fix.

  • VenkateshV
    @nitin @Kailash @sujith
    I certainly do appreciate and understand the technical glitch what you have mentioned.

    I see this issue as double edge sword, one side it would choke your server certainly yes i fully agree, on the other hand i'm losing a trade opportunity everyday. let me explain with facts.

    If you refer the attachment i have sent, as of today you would see almost 62 stocks out of 213 (almost 30% Plus of total FNO segment) comes under less than INR 200 price range and keeping a TSL 1, amounts to 0.5 % and not something practical to put such a trailing stop loss.

    Fact is this number will grow more dynamically as and when the stocks are split.

    Now the million dollar question is how to trade on these stocks especially in Future segment on Bracket order with TSL?

    As a trader i see that I'm losing a potential profitable opportunities everyday, which i could have capitalize it but could not due to the present limitation.

    being said so, i would appreciate at least you could do some work around temporarily at your end to see the TSL can be set something like 1 tick or reduce from 20 to 5 ticks at least for stocks less than INR 200. Till some final solution provided by your OMS vendor.
  • VenkateshV
    @nitin @Kailash @sujith

    i'm afraid whether have you seen my this post? Pls advise
  • nithin
    @VenkateshV this is not a technical glitch, but yeah a technical limitation of using the bracket orders with TSL. Unfortunately nothing we can do presently. But if you are using the Kite APIs, maybe you can incorporate this trailing as part of strategy yourself.
  • VenkateshV
    @nitin @Kailash @sujith

    Great, then what are your plans to overcome this technical limitation, here the frustration is, i could not take advantage of the TSL facility despite the feature is still in built within BO.

    Being Said that, in the background are you serious in working with your OMS vendor to make this happen? in some reasonable timelines?
  • nithin
    @VenkateshV don't have a timeline on this. But yes, we are speaking to our OMS vendor on this.
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