Open and Arm ScaleTrader
Consider using a BUY scale algo if prices are dropping. This will help you to buy at incrementally decreasing prices and sell at a profit. Consider using a SELL scale algo if, conversely, prices are rising. This may help you to sell at increasingly higher prices and buy at a profit.
On the quote monitor, highlight the underlying you want to trade and from the Trading menu select ScaleTrader.
You can also access ScaleTrader from the right-click menu by selecting Trading Tools then ScaleTrader.
Specify Order Parameters
As an example, let's set up a scale order that buys at incrementally lower prices, and sells at a profit of $.04, all the way until we hit our maximum position of 2500, at which point the algo will stop. We recommend you set up these parameters in the PaperTrader to understand how the algo will work.
Set the order parameters to achieve the following. Purchase up to 2500 shares of IBKR (currently trading at $14.08 - $14.09) in increments of 100 shares each, starting at $14.09. Purchase each increment for $.02 less than the previous fill price, and then sell the shares at $.04 greater than the fill price.
Preview and Submit the Order
You can preview your order before submitting by clicking the Preview button along the bottom of the ScaleTrader. Transmit the order from the Order Preview box or by using the Transmit button along the bottom of the ScaleTrader. After you transmit the order, the ScaleTrader tool closes.
Monitor the Algo Progress
You can monitor the overall progress of each parent Scale algo order using the ScaleTrader Summary, and see the progress of each order increment for a single Scale algo using the Scale Progress viewing box.
To open the ScaleTrader summary page, click the ScaleTrader tab.
All working PARENT scale orders are displayed, one per line, in the Scale Summary panel.
To see the progress of specific scale components, right-click the order and select View Scale Progress.
Cancel or Modify an Order
You can cancel or modify a ScaleTrader algo order at any time while the order works. First, reopen the ScaleTrader by selecting the scale order and clicking the ScaleTrader icon on the toolbar. Make necessary changes to any editable order parameters.
Use the buttons along the bottom of the ScaleTrader to Preview or Transmit the modified order, or to Cancel the scale algo. Use the Stop/Start buttons to pause and restart the algo. Use the Dismiss button to close the ScaleTrader dialog box.
Any trading symbols displayed are for illustrative purposes only and are not intended to portray a recommendation.