Trading bots enable you to automate your stock and options trading strategies inside your brokerage account.
Creating a new bot is easy. From the bot dashboard, select “Create Bot” in the top left corner.
Customize the bot’s global settings with a name and icon. Insert allocation and position limits, and the bot is ready. Global settings can be edited at any time but must be entered when a bot is created.
Give your bot a name. Naming the bot makes it easy to remember the bot’s purpose, inputs, and methodology. As you add more bots to your portfolio, it is important for the name to be easily identifiable.
You can select a personalized icon and color scheme for your bot to keep your strategies organized.
Set the total allocation for the bot. The allocation is the total capital available for the bot to open positions. The bot will not enter new positions beyond the allocation limit. Bot allocation limits are calculated at position entry.
Allocation is different than risk or position limits. Allocation is the total purchasing power available to the bot to open new positions. Risk defines the maximum amount that can be lost on a single position and can be set as a dollar or percentage amount in the automation editor.
Market conditions at position closing may cause increased capital allocations beyond the calculated maximum risk at position entry. If the market is illiquid or bid-ask spreads are wide, bots have the potential to risk more capital at position exit than was allocated at position entry.
For example, if there is a wide bid-ask spread for a credit spread position, the ask price to close the spread may exceed the spread’s width. As always, you have the ability to manually override positions, SmartPricing settings, exit criteria, and orders at any time.
If you manually override a position, the Option Alpha platform no longer communicates with the position, and the position will not count against position limits or capital allocation limits. You may need to re-consider your bot’s capital allocation limit if you manually override positions.
Position Limits - Daily
Bot scanners and other entry automations automatically turn off when a position limit is reached. You must set daily and total position limits when a bot is created.
The daily limit is the maximum number of positions the bot can open in one day. For example, a bot with a daily limit of two positions will stop scanning for new positions if two positions have been opened in one trading day. Daily limits are for opening positions only; you can close as many positions as you want.
Position Limits - Total
The total limit is the maximum number of open positions available for a bot. The bot will not open new positions if the total position limit is reached.
Select “Create Bot” after you enter the global settings. You may go back and edit the bot settings later if you want to make changes.
Your new bot is added to your portfolio. The positions, automations, and log are blank and ready for you to add automations.
New bots automatically default to off when created. To turn on the bot, simply toggle the switch to "On" in the top right corner.