The October 2024 release includes new SmartPricing settings that allow traders to select multiple options when choosing a Final Price. This gives us more automated control when entering and exiting positions in all market conditions and lets bots dynamically adapt to changing bid/ask spreads.
We can now combine multiple Final Price settings. If more than one final price option is selected, the bot will use the best price as the final price when sending orders.
So, if the bid/ask spread is narrow, the best price may be the ask when entering a trade. But if the spread widens, we may want to use the slippage from the mid-rice setting to limit how many prices the bot can try. This allows the bot to trade even when bid/ask spreads are wide while protecting against price fluctuations.
For example, if selecting 100% of the bid/ask and $0.10 from the mid-price when opening an iron butterfly, the best available price of the two will be used.
In the image below, the bid/ask spread is $22.30 -$23.00, with a mid-price is $22.65. We can see the bot would have tried a final price of $22.55 ($0.10 from the mid) but would not have continued to the bid price of $22.30.
This new option is available wherever SmartPricing settings are used, so we can customize different open and close position actions throughout our bots.
Plus, we can customize the Trade Pricing settings and use them automatically when creating a bot from a backtest to ensure the bot results are set up to align with the backtested entry and exit orders as closely as possible.
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