Bot Actions

Close Position

Closing actions allow bots to close positions automatically. Here is how to use closing actions to have complete control over how and when a position is closed.
Close Position
Steve Henry
May 12, 2021

The closing action inside the automation editor gives a bot the ability to close positions automatically and allows you to have complete control of how and when a position is closed.

Select the “+” symbol in the automation editor to add an action from the list.

Screenshot of bot action homepage with the four bot actions highlighted

NOTE: There is more than one way to use the closing action. It may be more useful to utilize the repeater function to exit a position. Repeaters can monitor all positions currently open in a bot. Simply create a repeater action for the desired positions, and end the decision recipe with a “Close Position” action.

Screenshot of bot automation editor with repeater action highlighted

When the “Close Position” action is selected, it can dynamically reference each position that the bot has open. This allows you to add positions to the portfolio continuously, and one automation can pull in data for each individual position the bot has open. All you need to do is link the position in the menu. The bots are smart enough to reference the position data for each position that is open and close the position.

Screenshot of repeater action with position highlighted

If you do not want to immediately close all your positions with an automation, you can use the “Close Position” function to exit a position based on one or more decision criteria. Select the gear icon to precede the “Close Position” function with a Decision action.

Screenshot of automation editor with gear icon on close position highlighted

NOTE: Be sure to add the Decision action after the Repeater action, because it will pull in each position’s specific data. The criteria will be nested between the Repeater and Closing actions.

Screenshot of automation editor with inserted preceded action highlighted

Close Position actions are typically located at the end of the decision tree and can be as simple or complex as you prefer.

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Repeater
Repeating actions repeat through a list of positions in the bot to identify specific criteria you define. Here is how to use the repeater to manage positions.
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FAQs

Can my bot close a partial position?

No, a bot is not able to take off just part of a position that was put on in a single trade, however, your bot can be built to phase into and out of trades.  For example, if you put on a 6 contract Call Credit Spread, it would have to be taken off in that same size, but if your bot was built to phase into that position 2 contracts at a time, it could be taken off 2 contracts at a time.

Can I manually close a position opened inside a bot without an automation?

Yes. Select the position to close from the Positions tab, then click on the Close Position button.

When a position is closed where do I see the final closing price and trade details?

Details are shown under the "Closed Positions" heading on the bot's Positions tab.

Do I have to only use monitor automations to close positions or can I use event automations too?

Event automations can be used to close positions.

Can a bot close a position that was initiated from my brokerage account manually?

No. The bots are not aware of positions initiated using the broker platform.

What type of order does the bot send to close a position?

Bots use limit orders to close a position. They default to using Option Alpha's smart pricing which attempts to get the best price by trying a series of prices for the trade, replacing each order with a more aggressive price if it does not fill within a small time interval.

What happens if I opened a position using an automation but then closed it manually in my brokerage account?

If a user manually closes a trade in their brokerage account the bot will not know about the closing of that order. Right now, the position will need to be manually aborted inside the automation to reflect the change of status in the brokerage account.

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