Manage Your Positions with Return on Risk

We’ve released a new decision recipe that evaluates a position’s return on risk, giving you another position property to exit positions.

There are multiple ways to use this recipe to manage your positions inside a monitor automation.

For example, you could set up an automation to close a position when it reaches a 25% return on risk. You could also include an additional recipe to automatically exit a position two days from expiration that has not yet hit your ROR% threshold. 

This recipe is useful for both short option spreads and long positions.

For example, if you open a $10 wide iron condor for $3.00 of credit, you could use a return on risk of 25% to close the position once it has a $175 profit.

If you want to exit a long call position once it reaches a profit three times the initial cost of the trade, you could use the recipe and set the return on risk to 300%.

We continue to improve the platform and add features to give you multiple opportunities to automate your strategies. This new recipe is a great way to manage profits relative to your level of risk.