The open position action in the automation editor allows you to automatically open a position inside any automation you are currently running. The open position action can be added inside scanner and monitor automations.
Select the “+” symbol in the automation editor to add an action from the list.
Select the type of position to open. You can choose from long, short, and neutral stock and options strategies.
Once a position type is selected, you will enter the specific details for the strategy you want to open. The recipes allow you to customize the position as creatively as you wish. Equity positions include inputs for the symbol and share amount.
Options positions include inputs for the symbol, expiration date, option legs, and contract size.
NOTE: You can always use custom inputs and complete the decision-making process at the automation or bot level by adding values to a field later.
When entering a new position, you can select from the available recipes in any field to customize the action.
The expiration field provides three different choices for selecting an expiration date.
- You can enter a position a certain number of days from expiration.
- You can enter on or after a specific date.
- You can choose the same expiration as an existing position in the bot (this function only works in monitor automations).
Each recipe allows you to use any expiration series or monthly contracts only.
The next field you select the specifications of each option leg. There are multiple recipes available to choose a specific option.
- You can select an option based on delta or a strike price.
- You can select an option based on price or percentage above or below the underlying asset price.
- You can select an option based on price or percentage above or below a specific leg of the strategy, which is useful if you want to set the width of the spread in a multi-leg strategy.
- With monitor automations, you can also link to an existing position in the bot with the last two recipes, which can be useful if you’re entering or adjusting a position based on another open position.
Finally, you select the number of contracts in the amount field. There are four recipes available to select the number of contracts.
- You can choose a specific amount of contracts, and the bot will add as many contracts as allowed based on capital and position limits.
- You can specify a total amount of risk, and the bot will add as many contracts as it can for the allowed amount of risk, automatically accounting for the width of the spread and the credit received.
- You can choose to enter as many contracts up to a certain percentage of the bot’s allocation, available capital, or net liquidity.
- You can also use the same quantity as an existing position.
When you have completed all the fields, select “Save,” and the action is complete.
You can edit any of the fields at any time by simply selecting the recipe inside the automation editor.
Linking open positions
Adding an open action inside a monitor automation can pull in data from existing positions and link the action to the other positions. For example, you may want to use this function to add an opposing call credit spread to hedge a put credit spread that is challenged.
NOTE: This will only work after a repeater action inside the automation because it needs to pull in the data from the existing positions for reference.
To link an open action, select the “+” symbol after the repeater action in a monitor automation, and select “Open Position.”
Choose a position type from the list of positions to link the action and input the data into the fields. You will use the “Same as position” field to link the new position to an existing position.
You will be prompted to select a specific position type.
Then select the position to which you want to link the opening action. The action will repeat through and use the same input, such as expiration date, for any of the position types specified.
The recipe’s field will now reflect that any positions opened inside the automation will use the same inputs as positions of a particular type.
The ability to link actions to existing positions allows you to be creative and detailed when adding or adjusting positions. You can use inputs based on existing positions, and/or set up the fields to reference inside the new open action. For example, the short leg of a strategy may reflect the short leg of an existing position, while the long leg references the short leg just created.
REMEMBER: The bot will always follow the safeguards and limits of the global settings. If it does not have the capital or position allocation available, the bot will not add a new position.