SellShort (Reserved Word)

Disclaimer

This trading verb is used to open a short position. A short position is created by covering all open long positions (if any) and opening a short position. The specifics of the order are defined by the optional parameters used in the statement (that is, number of shares, at what price, and so on).

SellShort [("Order Name")] [Number of Shares] Execution Method ;

Only the word SellShort and the Execution Method are required to open a short position. The following is a complete Easy Language statement:

SellShort This Bar on Close;

If no other parameters are specified, the default value for the Order Name is "Short", and the number of contracts entered is then determined by the amount specified in the Trade size section of the Strategy Properties for all Strategies dialog box.

Each portion of the statement, Order Name, Number of Shares, and Execution Method is described next.

Order Name

When using multiple short entries within a strategy, it is helpful to label each entry order with a different name. By naming entry orders, you can easily identify all positions both on the chart and in the Strategy Performance Report. Also, naming the entry orders allows you to tie an exit to a particular entry. For more details, see BuyToCover.

To name a short entry order, include a descriptive name in quotation marks and within parenthesis after the trading verb SellShort. For example:

SellShort ("My Entry") This Bar on Close;

This instruction initiates a short position named My Entry. Again, when a strategy that contains this statement is applied to a price chart, the order name is displayed on the chart and in the Strategy Performance Report under the Trades tab.

Number of Shares/Contracts

To specify how many shares (or contracts) to open the short position with, place a numeric expression followed by the words shares (or contracts) after the trading verb SellShort (and entry order name if used). Some examples:

SellShort ("My Entry") 100 Shares Next Bar at Market;

SellShort 5 Contracts This Bar on Close;

SellShort Value1 Shares Next Bar at Market;

  The words shares and contracts are synonymous.

If the number of shares/contracts is not specified, the value entered under the Trade size section of the Strategy Properties for all Strategies dialog box is used. The Trade size section controls the default trade amount; this can be set to either a fixed unit or dollars per transaction. The Trading Strategy Engine uses what ever is specified in this section only if the SellShort statement does not specify the number of shares/contracts with which to open the position.

Order Action

You must specify one of the five different order actions with your SellShort order.

... this bar on close;

... next bar at open;

... next bar at market;

... next bar at yourprice Stop;

... next bar at yourprice Limit;

The execution method this bar on close is provided for backtesting purposes only; it enables you to back test ’market at close’ orders, which you cannot automate using TradeStation. Given that all orders are evaluated and executed at the end of each bar, TradeStation reads and issues the this bar on close order once the bar has closed (for example, once the daily trading session has ended). TradeStation fills the order using the close of the current bar, but you must place an order at market for execution on the next bar. This invariably introduces slippage.

An order to SellShort next bar at price Limit instructs TradeStation to sell at the first opportunity at the specified price or higher. A SellShort next bar at price Stop order instructs TradeStation to sell at the first opportunity at the specified price or lower.

By default, a strategy stop or limit order will be considered filled at the stop or limit price if that price falls within the range of the bar on which the order is active.  When automating a strategy, the user has the option of selecting whether to mark strategy orders as filled based on 'price activity' or when the TradeManager reports that the order was actually filled in the market.

Example

The following statement sells short 100 contracts/shares at the closing price of the current bar:

SellShort 100 Shares This Bar on Close;

Additional Examples

This statement sells short the default number of contracts/shares specified in the Trade size section of the Strategy Properties for all Strategies dialog box at the open of the next bar, and names this entry order Entry#2:

SellShort ("Entry#2") Next Bar at Market;

The next statement places an order to sell 5 contracts at the low of the current bar minus the range of the current bar, or any price lower. Note that Range is an EasyLanguage function that returns the high minus the low. This order remains active throughout the next bar (until filled or canceled).

SellShort 5 Contracts Next Barat Low - RangeStop;

The following statement places an order to sell 100 shares at the highest high of the last 10 bars, or any price higher. This order remains active throughout the next bar (until filled or canceled) and is named HighSell:

SellShort ("HighSell") 100 Shares Next Bar at Highest(High, 10) Limit ;