Daily Position Limit Error

The “daily position limit” error occurs when a bot attempts to add a position that exceeds the number of new positions allowed for a single trading day. Here is what you need to know about daily position limit errors.
Daily Position Limit Error
Steve Henry
Jul 27, 2021

Bots have safeguards and limits that alert you when an automation encounters an error.

Daily position limits are in place to limit the number of positions opened in a bot per day. The “daily position limit” error occurs when a bot attempts to add a position that exceeds the number of new positions allowed for a single trading day. 

Daily position limits are set in a bot’s global settings. 

Screenshot highlighting the bot's global setting display


You can change daily position limits at any time, but no more than ten positions may be opened in a day. Be aware that increasing the daily position limit may increase capital exposure. 

Screenshot highlighting position limits in the global settings display

The dashboard displays all daily activity for the bot, including the number of scanner and monitor automations that have run, how many decisions they made, and how many positions were opened or closed. The activity is time-stamped, so you know when it was last updated.

Screenshot highlighting daily activity display on the bot dashboard

NOTE: Position limits are for new positions that are added, not closed. You can close as many positions as you want.

Position statement

The Position statement lists all open, closed, and canceled positions. 

Screenshot of the bot position statement display

Error messages are displayed inside of canceled positions.

Screenshot highlighting canceled positions on the position statement

Selecting a canceled position displays the position details. The error message explains why the bot was unable to open the position.

Bot log

You can also access error messages in the bot log. The bot log shows your bot's automation activity.

Screenshot of the bot log display

Automations that encountered an error will be displayed in the bot log with a red circle and an explanation of why the bot discontinued the automation, such as exceeding the daily position limit. The date and time the automation failed is also listed.

Screenshot highlighting a daily position limit error on the bot log

You can select the automation to see specifically where the bot encountered an error. For example, if the daily position limit is set to six positions, and the bot attempts to open a new position, an error will occur. The bot will not enter a new position until another position is closed --manually or through an automation-- and space becomes available in the portfolio.

Screenshot highlighting the decision criteria in the automation editor that generated the error message

Notifications

Error messages are also displayed in the notifications. 

Screenshot highlighting the location of the notification icon

Notifications list all automation activity, including any time a bot encountered an error. As with the bot log and position statement, you can select an automation to view the decision criteria’ details.

Screenshot highlighting the notification display of automation activity


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Total Position Limit Error
The “total position limit” error occurs when a bot attempts to add a position that exceeds the number of positions allowed for the bot. Here is what you need to know about total position limit errors.
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FAQs

Why do bots have a daily position limit?

Bots have a daily position limit for managing risk.

What does a "Daily position limit error" mean?

A "daily position limit error" means that a bot has reached its limit in the number of positions it can open in on one day.

How can I change my daily position limits?

You can update your daily position limits in the bot’s Settings tab.

Will I get notified if a bot runs into a daily position limit error?

Yes.

Do daily position limits in any way limit the number of positions I can close?

No, they do not. You can close any number of positions you need to in a day.

Do daily position limits only limit new positions that can be entered?

Correct, this will limit the number of new positions that can be opened in a given day.

Can I re-open a new position right away if I close an existing position and free up a position slot in my bot?

As a bot closes a position, it will free up an available position for the next run of the bot. But a position will not be closed and a new one opened within the same automation cycle.

How is a "Position" defined inside a bot?

A position is simply defined as either being long or short equities or long or short options or options spreads.

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