When you automate trading with PickMyTrade on Tradovate, your strategy signals are always sent as market orders. This isn’t a limitation—it’s an intentional safeguard to keep your strategy execution accurate, reliable, and perfectly synchronized with your broker account.
The Problem with Limit or Stop Orders in Automated Strategies #
Limit and stop orders are conditional orders—they only execute if the market price reaches a specific level. In an automated environment, this creates several risks:
1. Unfilled Orders → Position Mismatch #
If your strategy sends a buy limit order and the market never touches that price, the order remains unfilled.
- The automation may assume the trade was executed.
- The broker account says no position exists.
- This causes a quantity mismatch, breaking the synchronization between your strategy and your live account.
2. Missed Opportunities in Fast Markets #
In volatile conditions, prices can skip over your limit level entirely. The trade is never entered, yet your strategy might continue managing it as if it were.
- Leads to skipped trades.
- Can cascade into incorrect position closures later.
3. Automation Desynchronization #
Strategies track position state step-by-step. One missed or partial fill means every future step might be working off wrong assumptions. This can result in:
- Extra unwanted trades.
- Failure to exit at the right time.
- Risk exposure far beyond what you intended.
Why This is an Industry Standard #
It’s not just PickMyTrade—most automated trading systems, from TradingView to NinjaTrader to MetaTrader, execute market orders for strategy automation.
- Market orders guarantee execution, so the automation always matches broker reality.
- Limit and stop orders are generally reserved for manual discretionary trading.
Regulatory bodies like the Futures Industry Association (FIA) highlight the need for certainty of execution to maintain system integrity and prevent mismatches.
Why Market Orders are Better for Automation #
| Feature | Market Orders | Limit Orders |
|---|---|---|
| Guaranteed Execution | Yes | No |
| Prevents Quantity Mismatch | Yes | No |
| Works with Fast Markets | Yes | Risk of Missing |
| Keeps Strategy in Sync | Yes | No |
Example Scenario #
With Limit Order:
- Strategy signals Buy Limit at 4200.00
- Price moves from 4200.50 → 4215.00 without touching 4200.00
- Order remains unfilled; strategy assumes position is open → next sell signal fails
With Market Order:
- Strategy signals Buy Market at current price
- Order fills instantly; both broker and strategy state match perfectly
Summary #
- Non-market orders (limit/stop) are not supported for strategies in PickMyTrade.
- Market orders ensure trades are executed immediately, preventing missed fills, mismatches, and desynchronization.
- This policy follows industry best practices for reliable automated trading.
- If you anyway want to use strategy, you can convert your strategy to be trigger with indicator, and place Limit orders.
