Markets can move fast. It can be difficult to track the price movements for a portfolio of stocks.
You may have the perfect entry and exit criteria planned based on an asset’s price. You may even have an alert set on your phone or computer to notify you if that criteria is met. But, life happens.
You can do everything right and still miss an opportunity because you couldn’t execute your plan in time.
Automation lets you scan the market and make decisions instead of manually reacting to price changes throughout the day.
This powerful recipe is a great addition to any automation, or, depending on your strategy, may be the only decision action you reference when entering a new position.
The following example uses a simple decision recipe to reference a symbol’s price change over a defined time period to make automated trading decisions inside a bot.
The decision action checks if a security’s price has increased or decreased by a certain amount over a defined period. You can even check multiple price changes over different time periods before proceeding through the automation.
Momentum, trend following, and many other strategies rely on reaction to price movements. Notifications and alerts have come a long way in helping traders react in a timely manner. Automation takes the next step.
This decision recipe for a symbol’s price change enables you to automate price changes that matter for your strategy and assign decision actions based on a stock’s price fluctuations.
So whether you “buy the dip,” “sell the rip,” or anything in between, you can be confident your bots won’t miss an opportunity if a stock moves to your desired entry or exit price.