Offsets in study-based conditional order

[10basetom]

Hi, in my study I have a trigger to enter a position, enterSignal. In order to prevent false positives during live trading, I currently use this code to enter the position:

# Enter if enterSignal was TRUE in the previous bar
enterSignal[1]

This is working as expected so far -- when using 15m charts, trades are entered as soon as the clock strikes 10:45 if enterSignal was TRUE at 10:30 bar.

My question is, what if I changed the code to a negative offset:

enterSignal[-1]

Using the example above, if enterSignal was TRUE at the 10:30 bar, when would the order execute?

I read https://usethinkscript.com/threads/plotting-future-and-past-offsets.4093/, but still not sure how it would impact a live trade such as in the example above.

 

[Sylifis]

Hi, in my study I have a trigger to enter a position, enterSignal. In order to prevent false positives during live trading, I currently use this code to enter the position:

# Enter if enterSignal was TRUE in the previous bar
enterSignal[1]

This is working as expected so far -- when using 15m charts, trades are entered as soon as the clock strikes 10:45 if enterSignal was TRUE at 10:30 bar.

My question is, what if I changed the code to a negative offset:

enterSignal[-1]

Using the example above, if enterSignal was TRUE at the 10:30 bar, when would the order execute?

I read https://usethinkscript.com/threads/plotting-future-and-past-offsets.4093/, but still not sure how it would impact a live trade such as in the example above.

You can use both the Condition Wizard and the thinkScript Editor to set your conditions or define a numerical value, e.g., a study. Note when creating conditions for conditional orders via the Condition Wizard, anytime you use a STUDY you must offset the bars by 1. I REPEAT: YOU MUST OFFSET THE BARS BY 1 WHEN CREATING A CONDITIONAL ORDER USING A STUDY! This is because you want your order to execute on the open of the bar FOLLOWING the bar in which the strategy was fulfilled. You want the previous bar to close to ensure that your condition(s) remain true througout the entire duration of the bar till the close. For example, midway through a 15 minute candlestick, your condition could trigger being fulfilled, let's say the MACD crossing 0, thus creating a buy order. However, the bar could close in a way where the MACD did not end up closing crossing 0, which means your conditions weren't actually satisfied since the bar didn't close with the conditions being fulfilled. This should reflect how the same code would be executed via backtesting a strategy if that is your desire. Once you have created your order conditions, press Save.

 

[MerryDay]

Hi, in my study I have a trigger to enter a position, enterSignal. In order to prevent false positives during live trading, I currently use this code to enter the position:

# Enter if enterSignal was TRUE in the previous bar
enterSignal[1]

This is working as expected so far -- when using 15m charts, trades are entered as soon as the clock strikes 10:45 if enterSignal was TRUE at 10:30 bar.

My question is, what if I changed the code to a negative offset:

enterSignal[-1]

Using the example above, if enterSignal was TRUE at the 10:30 bar, when would the order execute?

I read https://usethinkscript.com/threads/plotting-future-and-past-offsets.4093/, but still not sure how it would impact a live trade such as in the example above.

# Enter if enterSignal was TRUE in the previous bar
enterSignal[1]

This code uses a look back so it lags 2 bars waiting until this previous bar is one bar back.
This is useful at times when using on a higher aggregation with an indicator that "repaints" the current candle with false signals until is closes.

enterSignal[-1]

This code uses a look forward so it lags 2 bars waiting for the future bar to close.
This is useful at times when using an additional condition that is waiting to confirm the current candle.

Most conditional orders can just use "close" wherein the order executes at the close of the current candle or as the poster stated above: open[-1] waits for the open of the next candle (this is the better option if getting false signals on the current candle)

 

[10basetom]

You can use both the Condition Wizard and the thinkScript Editor to set your conditions or define a numerical value, e.g., a study. Note when creating conditions for conditional orders via the Condition Wizard, anytime you use a STUDY you must offset the bars by 1. I REPEAT: YOU MUST OFFSET THE BARS BY 1 WHEN CREATING A CONDITIONAL ORDER USING A STUDY! This is because you want your order to execute on the open of the bar FOLLOWING the bar in which the strategy was fulfilled. You want the previous bar to close to ensure that your condition(s) remain true througout the entire duration of the bar till the close. For example, midway through a 15 minute candlestick, your condition could trigger being fulfilled, let's say the MACD crossing 0, thus creating a buy order. However, the bar could close in a way where the MACD did not end up closing crossing 0, which means your conditions weren't actually satisfied since the bar didn't close with the conditions being fulfilled. This should reflect how the same code would be executed via backtesting a strategy if that is your desire. Once you have created your order conditions, press Save.

That's a great explanation, and it's also why I'm currently using the [1] offset. My question was out of curiosity what would happen if I were to use a negative offset in a conditional study, which I now understand a little better after what the admin said.