I wanted to verify how collective2 handles stop orders for positions that may have already exited or stops for quantities that are greater than the current position. To test this I opened 2 shares of VXX and placed several sets of stops for 2 shares. Then I closed one share and waited to see what would happen.
Per the screenshots below, the horizontal green line shows the system was holding just one share of VXX. But there are stops for 2 shares at $16.14 (highest of the stops) and several other stops below $16.14. I manually closed one share of VXX so the closest stop of $16.14 would be the first to hit with a quantity of two shares. Fortunately, because all of the stops were set to “ToClose” once C2 saw that we were at zero shares due to hitting $16.14 and selling one share the 2 quantity stop was canceled along with all other stops. So only one share was sold at the 15:40 EST for $16.14.
This is good in my opinion. It should mean that having “ToClose” stops floating out there with quantities greater than my position shouldn’t cause a short position to be opened. I don’t intend to have a bung of floating stops out there all the time, but it is a nice safety measure.
Disclaimer
This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.
The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.
How I Invest 