The old way of searching for every key variable of a position and manually entering your trades died years ago. Now with the recent upgrades to Trade Ideas, our team added a new action inside automations to 'Open Trade Idea' which leverages the same databases to help find and enter trade ideas.
Using the Trade Ideas action, your bot will automatically sort, rank, and enter the best available trade based on your defined criteria and analyze the entire database of potential opportunities. It is an entire trading strategy wrapped into one simple action.
This new action can be added to any new or existing automation.
You can of course still use the Open Position action to set specific position details such as type, days to expiration, strike prices, and position sizing. With the new Trade Ideas action, you’re able to outline key metrics, and the bot will automatically find the trades meeting your criteria and open a position using Trade Ideas.
Using the Open Trade Idea action lets you target a specific symbol and strategy type (watch this video to learn how you can search for Trade Ideas across multiple symbols and strategies).
For example, you could use Trade Ideas to open a short put spread in SPY. The expiration and individual leg variables are optional; you can input specific criteria or let Trade Ideas analyze all the available SPY short put spread positions for every expiration and strike price to find a trade. You define the trading opportunity and let Trade Ideas do the rest.
Here’s what it looks like to set up a SPY short put spread with an expiration 10 - 30 days trading one contract with normal SmartPricing, Exit Options set to 50% profit taking, and closing 2 hours before expiration.
You can also set entry and position criteria using minimum probabilities, EV, Alpha, reward/risk, and more.
In this example, Trade Ideas will rank all potential trades by their Alpha and open positions if they pass the following probability filters:
- EV per contract greater than $5
- Probability of profit greater than 70%
- Portability of max loss less than 20%
- Ideas ranked by best Alpha
That’s it. Trade Ideas will do the rest! You now have a simple scanner automation with a robust Trade Ideas action to evaluate opportunities and enter your ideal setup.