The Easiest Way to Start Systematic Trading

Master Basic Order Type

Hey all,

Incase you missed it I have started a podcast about systematic trading with by buddy Dave.

If you’re new to the idea of systematic trading, the first step is to stop placing random market orders and start using some basic tools to automate your trades. This not only gives you more control but also takes the emotion out of trading. Here’s a quick breakdown:

1. Limit Orders: The Easiest Form of Automation

Limit orders are the perfect intro to automation. You set a price, and if the market hits it, your trade goes through. You’re not chasing prices or dealing with slippage. Set it, forget it, and let the market come to you.

2. Stop Limit Orders: Precision Control

A stop limit order helps you get in or out of a trade without getting burned by sudden market moves. Set a stop price and a limit price, so if things move fast, you’re not left holding the bag.

3. Time Stops: Automate Your Exits

Time stops automatically take you out of a trade after a set period, perfect for day traders who want to avoid sticking around too long. Interactive Brokers lets you set this up easily, so you can walk away without worrying about missed exits.

4. OCA Orders: Set It and Forget It

OCA (One Cancels All) orders group your stop loss and profit targets together. If one triggers, the other cancels, so you’re not left in an open trade by accident. It’s a great way to automate your entire trade plan in one go.

5. Good at Time Orders: Avoid the Open Chaos

If you’re swing trading, try using “Good at Time” orders to avoid the craziness of the market open. You can set your orders to go live after the morning volatility dies down, keeping things more controlled.

The Bottom Line

Mastering these basic order types is the easiest way to start automating your trades. It’s simple, effective, and removes a lot of stress. Set up your trades with these tools and let the market work for you, not the other way around.

Thanks for reading, and happy trading!