1-minute Exit Options are a favorite among Option Alpha traders. With our latest update, they now include two new fields for Expected Value (EV) and Alpha.
EV and Alpha are available in Trade Ideas and decision recipes. Adding them as a variable to automated position management gives you even more control over your positions.
You can set EV and Alpha exit options in any position’s details (or not; they’re optional!).
Not only can you evaluate the Expected Value of a trade before entering the position, but you can also use it as an exit trigger. Why is this so powerful? It allows you to monitor the position’s active, dynamic value through its duration while markets and probabilities change. So, not only do you know if it is a good trade to enter, but it could help you exit or adjust trades that start to turn against you.
Alpha uses a position’s Expected Value and max loss to quantify each trade's anticipated return on risk. Alpha is a great way to standardize the risk-adjusted potential return so you can analyze multiple trade opportunities before opening a position.
Using Alpha as an exit trigger allows you to close the trade if it drops below a certain threshold or declines a specific amount since you opened the position. This tells you how the position’s current probabilities compare to its risk.
You can now use multiple criteria to trigger a position’s exit using various ever-changing inputs and outcomes.
The best part is Exit Options monitor your positions every minute, so you don’t have to. If any Exit Option triggers, an order is sent to your broker immediately for execution.