Advanced EasyLanguage Limit Order Features Presented by Mark Mills

Advanced EasyLanguage Limit Order Features TradeStation Securities, Inc. seeks to serve institutional and active traders. Please be advised that active trading is generally not appropriate for someone of limited resources, limited investment or trading experience, or low risk tolerance, or who is not willing to risk at least $50,000 of capital. We are going to be talking a lot about trading strategies. This does not mean that we provide or suggest trading strategies; we do not. We offer you unique tools to help you design your own strategies and look at how they could have performed in the past. While we believe this is very valuable information, we caution you that simulated past performance of a trading strategy is no guarantee of its future performance or success. We also do not offer or solicit the purchase or sale of any particular securities or securities derivative products. Any securities symbols used in the demonstration are used only for the purposes of the demonstration, as an example--not a recommendation. We are also going to be talking about automated electronic order placement and execution. Please note that even though TradeStation has been designed to automate your trading strategies and deliver fast order placement, routing and execution, these things, as well as access to the system itself, may at times be delayed or even fail due to market volatility, quote delays, system and software errors, Internet traffic, outages and other factors. Options trading is not suitable for all investors. Your account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. Automated trading, as it relates to direct-access electronic placement and execution of equity options trades, requires manual one-click verification before order is sent. Please visit TradeStation.com to view the document titled Characteristics and Risks of Standardized Options.

Advanced EasyLanguage Limit Order Features Advanced EasyLanguage Limit Order Options Two basic types of drawing tools provided in TradeStation Analytical – Used to analyze the data on the chart, price or indicator, to find meaningful patterns, trends and situations (EXAMPLES: chart patterns) Display/Informational – Used to highlight an occurrence on the chart and/or to provide additional information that may not be reflected on the chart (EXAMPLES: ellipses & text)

Advanced EasyLanguage Limit Order Features Worst Price Options: The limit order can be filled at this price or better Method 1: Literal value Method 2: Calculation Method 3: Automatic insertion based on inside bid/ask How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Worst Price Options: Method 3: Automatic insertion based on inside bid/ask (macro options) How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Worst Price Options: Method 3: Automatic insertion based on inside bid/ask (OrderBar options) How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Worst Price Options: Method 3: Automatic insertion (buy side) How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Worst Price Options: Method 3: Automatic insertion Why use “Hit/Take+”? In a fast moving market, “Hit/Take+” may do better than a market order. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Worst Price Options: Method 3: Automatic insertion (sell side) How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Worst Price Options: How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Dynamic Display Options: Peg/Show Best = Join Mid = Split How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Dynamic Display: Peg 1. Worst Price halts the price float produced by ‘Peg’ 2. In the Macro Wizard, ‘Join’, ‘Improve’, ‘Shave’, etc. are means of establishing ‘Worst Price’. The have no impact on ‘peg’. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Dynamic Display: Peg How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Routing Order How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options (Macros): Activation Rules StopLimit/StopMarket If touched Baskets How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: Timing It will send a new stop order to the 'stop server' only once per minute per chart. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: Cancel/Replace 2. You can have as many 'cancel/replace' messages, but only one unique order (of each order type (buy, sell, sell short, buy to cover) ) per minute. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: Trailing Stops 3. Trailing stops, since they are a single order, will be updated via 'cancel/replace' and avoid the 1 order per min per chart restriction. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: Stop Server rejects order 4. Stops delivered to the stop server after price has already crossed the stop threshold will be rejected. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: with Price Activity Fill Logic 4a. If the order gets rejected, you will get a message from automation indicating that the order failed. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: with Price Activity Fill Logic 4a (1) If strategy fill logic is set to 'Price activity', no additional messages will be generated. The rejection will cause a mismatch between 'strategy' and 'account' positions since the chart will assume the 'stop' was filled. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: with Price Activity Fill Logic 4a (2) If the strategy fill logic is 'When TradeManager Reports fill', the strategy will check order status each time the EasyLanguage code runs. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: with Price Activity Fill Logic 4a (3) When the strategy discovers the expected stop order does not exist, it will attempt to send another. If this second stop order is sent less than 60 seconds after the first, it will be held on the machine and possibly triggered. If the second order is more than 60 seconds after the first and price remains below the stop threshold, the rejection will occur again. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: with TradeManager Sync 4b (1) If the strategy fill logic is 'When TradeManager Reports fill', the strategy will check order status each time the EasyLanguage code runs. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: with TradeManager Sync 4b (2) When the strategy discovers the expected stop order does not exist, it will attempt to send another. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: with TradeManager Sync 4b (3) If this second stop order is sent less than 60 seconds after the first, it will be held on the machine and possibly triggered. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options: (Strategies) Operation: with TradeManager Sync 4b (4) If the second order is more than 60 seconds after the first and price remains below the stop threshold, the rejection will occur again. How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Delivery Delay Options How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Knowing order is active: Look at the TradeManager’s Order Tab: Peg How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Knowing order is active: Look at the TradeManager Order Tab (Activation order) How it works: Study and learn what you are looking for… Initially you see nothing, as you learn patterns appear without a single line drawn (EXAMPLE – Chart where tools fade in) Support & Resistance: Simple Economics Principle – Supply & Demand (EXAMPLE – Supply/Demand Graph) Role Reversal – Up Trend: Resistance becomes Support. Down Trend: Support becomes Resistance. (EXAMPLE – chart examples) Support & Resistance works due to Trader Psychology (EXAMPLE – graphic?) Trends & Reversals Up Trend – Rising Bars (EXAMPLE) Down Trend – Falling Bars (EXAMPLE) Peak and Valley (EXAMPLE)

Advanced EasyLanguage Limit Order Features Questions?