For some of my trading, it would be very useful to have the ability to issue a "peg to index" order.
i.e. I might want to enter a limit buy order at 10.00/share, but if the S&P 500 goes up by 1.0%, then I would want my limit upped to 10.10. Note, the security that I have my limit order on is NOT SPY or some S&P derivative - it would typically be something else that tends to track the S&P, and so I don't want to leave a stale, mispriced limit order out there if the market has moved noticeably.
I can do this manually by watching the markets, cancelling/updating orders and so on, but that is cumbersome and I may not do it as well as an automated system.
Ideally, I could do the following:
1) Enter a limit buy/sell order
2) Pegged to an index of my choosing (various popular indexes) or perhaps even an ETF that is more liquid than whatever I'm trading
3) With the ability to cap my move (i.e. if the market moves more than 3% up, don't increase my bid any further - if it moves more than 3% down, cancel my bid).
4) And it would be nice to have slightly more complex options (move my bid at 80% the rate of the S&P 500, or at a rate that blends two indexes, or something like that).
#4 is not critical.
Are there any brokers that offer this capability natively?
If not, are there any canned software packages (trading front-ends or whatnot) that easily enable this?
Or, how hard would it be to program the API of one of the above to do this? I've got considerable C/C++ experience, though I haven't written anything to the APIs that some of these brokers make available.
Thanks in advance for help.
i.e. I might want to enter a limit buy order at 10.00/share, but if the S&P 500 goes up by 1.0%, then I would want my limit upped to 10.10. Note, the security that I have my limit order on is NOT SPY or some S&P derivative - it would typically be something else that tends to track the S&P, and so I don't want to leave a stale, mispriced limit order out there if the market has moved noticeably.
I can do this manually by watching the markets, cancelling/updating orders and so on, but that is cumbersome and I may not do it as well as an automated system.
Ideally, I could do the following:
1) Enter a limit buy/sell order
2) Pegged to an index of my choosing (various popular indexes) or perhaps even an ETF that is more liquid than whatever I'm trading
3) With the ability to cap my move (i.e. if the market moves more than 3% up, don't increase my bid any further - if it moves more than 3% down, cancel my bid).
4) And it would be nice to have slightly more complex options (move my bid at 80% the rate of the S&P 500, or at a rate that blends two indexes, or something like that).
#4 is not critical.
Are there any brokers that offer this capability natively?
If not, are there any canned software packages (trading front-ends or whatnot) that easily enable this?
Or, how hard would it be to program the API of one of the above to do this? I've got considerable C/C++ experience, though I haven't written anything to the APIs that some of these brokers make available.
Thanks in advance for help.