I am reading a book on EasyLanguage and came across this code.

 

Code

Var: XX(1); //multiplier for average true range Var:ATRval(15); //lookback period for ATR calculation Buy next bar at close+XX*AvgTrueRange(ATRVal) stop; Sellshort next bar at close-XX*AvgTrueRange(ATRVal) stop;

On every bar close...
this code creates a BUY STOP order and SELL STOP order slightly above and below the current bar close.

Imagine a situation where none of these price levels are hit and thus no long/short entry is taken... and we move on to the next bar....

Now... again... two STOP entry orders are placed above and below the most recent bar close...

My doubt is... What happens to the already pending STOP orders?
Are they cancelled automatically ?
Please help me understand this...

I'm unable to understand the code of these breakout type strategies...

Ah!! Got it!

I found this in "Easy Language Essentials" book....

"The orders generated have a one bar duration and are cancelled if they are not filled by the end of next bar."

That solves the mystery!

If there is no fill then they are cancelled... Nice...