Before perusing Type 2 Express LCS, it should be
remembered that this LCS is as effective in profit yield
as the positive and powerful direction of AI software.
The role of the AI trading software is like the satellite
in the sky which directs the drivers on the earth on speed,
path, and traffic situation. Just imagine driving on paper maps.
The execution of LCS is when the trading is in 'Day Trading' mode.
The amount of LCS which AI computes and displays for
the trade, let us name it as loss tolerance, keeps changing
as the stock price changes.
In addition, the loss tolerance is usually big, because
its purpose is to allow reasonable degree of price reversal
for covering price change, so that AI suggested price
direction can begin to take effect. In addition,
it allows the trader to have the time to enter manually
the LCS amount right after entering the trade
of 'buy' or 'short'. This is one way of LCS use
It is Type 1 LCS use.
This method has one distinct advantage of having
few LCS fires on price reversal. The disadvantage is,
when LCS fires, the loss amount is usually big,
its process is slow when the trading system is very fast.
Express LCS is another way of LCS use.
The famous trading software, "thinkorswim"
of Schwab is quite suitable for express LCS.
What is it and what is the benefit?
It depends on the use of so-called
"Acive Trader ladder screen with trading template"
And the software of 'thinkorswim'
allows the LCS to follow the trading order at the same
time of order placing to the stock exchange, without manual intervention, when the order is placed, using
both screens below and the template section at left top.
Stock symbol TSLA
Date & Time: 12/22/2023 7:43PM(EST)
1 minute per candle. Extended market
Active Trader's screen
Section of interest is at right top -shaded in black.
within black shaded are:
1st heading at far left:-Qty (show buttons with quantity).
2nd heading at far left -Template:(1$ stop) and auto send with a check off box.
Right below the 2nd line - heading(Ena.. | Qty Link | Offset)
(2 lines below) Please look at 2 lines below 'Offset'.
1st line (+.50 Limit). This button of 1st line is always checked off.
2nd line (-1.00 Stop) means: if TSLA price falls from purchase price by $-1.00 The system will sell 100 share (bought a couple seconds ago) for LCS.
No manual intervention here.
4 Stocks in Active Trader platform & Choice to Trade per AI Direction
This is the CBO Trading Active Trader platform.
When AI messages hint the profitable choice among 4 stocks -TSLA, LRCX, AMD and META,
then, that stock is selected by clicking on the top line where stock symbol is
and the line is highlighted in blue color, and the trader uses 'click on the price
in buy or select column of the selected stock, and executes the trade. Then,
LCS follows and is entered simultaneously. Very fast and reliable.
No manual typing of price, LCS and other trading instructions.
This is different from traders' manually entering LCS
after placing trading orders. In this case, the process
is naturally slow. At the stock market which is
notoriously fast, such manual submission of LCS Is
ineffective and prone to loss.
What benefit has the express LCS?
It is concurrently submitted as the trading orders do.
Fast and protective from any loss coming from lack of
timeliness. It also allows the trader to take
advantage of unexpected big price reversal.
Example is:
Send $0.05 together with the trading order.
Say, order is shorting stock A $11.00. Then,
its companion LCS is $0.05.
This express LCS can repeat to be used
until the AI suggested direction begins to be
effective. Say, AI price direction is 'price fall'
and the trader takes this information as 'shorting'.
One(1) express LCS fire or more, but deliciously
profitable results even though it is used many times,
as long as AI price change direction comes true.
Lets say the stock price is $11.00.
Shorting 100 shares at 11.05 = $1,105,
(buying 100 shares at $11.00 and add $.05
to it as LCS.) Please remember that
stock price enters first and in less than
a second, the LCS is entered to the stock exchange
via stock broker.
Say, a couple minutes later, the price passed
$11.05 to $13.60. Here, the trader benefits
from not losing big as much as $255 (1,360-1,105),
because his loss is only $0.05 x 100 shares.
Now, if AI price direction is trust worthy,
the trader shorts again, by adding $0.05
to the increased price, $13.60 + $0.05 = $13.65
as new trading price.
Suppose the stock price fell to $10.50, as the AI price
direction suggested. The max profit be $315-->
($13.65 x 100 = $1,365 - covering cost ($10.50 x 100 =
$1,050) = profit $315.
Even if $5 which is express LCS for 100 shares, fires
five times, still the cost is small, $5 x 5 --> $25.
It means five price reversals can be met with
little cost with express LCS, yielding high profit margin.
What is, additionally, attractive like a ripe cherry, is that
this $0.05 for any stock price level and any volume of shares.
Ex. $300 stock price --express LCS per share $0.05.
1,000 shares -- still per share express LCS per share
$0.05. That is $300.05 per share and
$0.05 x 1,000 = $50, added to 300,000 = $300,050 with
express LCS.
This is the CBO Trading Active Trader platform.