Bot Actions

Open Position

Opening actions allow bots to open positions automatically. Here is how to use opening actions to have complete control over how and when a position is opened.
Open Position
Steve Henry
Jul 29, 2021

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.

Screenshot of bot action selection window

Select the type of position to open. You can choose from long, short, and neutral stock and options strategies.

Screenshot highlighting the types of positions that can be opened

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.

Screenshot highlighting the customization options available when using the open position action for stocks

Options positions include inputs for the symbol, expiration date, option legs, and contract size.

Screenshot highlighting the customization options available when using the open position action for options

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.

Screenshot displaying expiration options available with the open position action

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.
Screenshot of customization options available for selecting option legs

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.
Screenshot displaying the options available when selecting the number of contracts for the open position action

When you have completed all the fields, select “Save,” and the action is complete.

Screenshot highlighting the save button for the open position action

You can edit any of the fields at any time by simply selecting the recipe inside the automation editor. 

Screenshot highlighting selecting an action recipe in 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.”

Screenshot highlighting selecting the plus sign for linking open positions

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.

Screenshot showing the "same as positin" field for linking positions

You will be prompted to select a specific position type.

Screenshot highlighting the position selection drop-down field

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.

Screenshot of the menu displaying the positions types available when choosing the opening position to link

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.

Screenshot highlighting the expiration field displaying same as position

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.

Screenshot dispalying the completed inputs for the open position bot action
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Next article
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.
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Do I have the opportunity to approve an order before it gets sent to my broker?

No. Once an open position action is triggered, an order is immediately sent to your broker for execution.

What happens if my bot attempts to open a position, but there is not enough capital in my brokerage account?

If your bot attempts to open a position, but your account does not have enough capital, an "error" will generate, and this will reflect in the Position Statment and Bot Log as an "error.” You will then need to cancel the error and take corrective action to ensure the error does not occur again.

Can I create custom inputs for the "Open Position" action?

Yes, you can create specific custom inputs for open position actions, including the strike price, expiration, and more.

Can I customize the strikes, expiration, and legs of a new position I want to open?

Yes, you have complete customizable control of your open position actions for options positions.

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