Big announcement!
Get a FREE Pro+ upgrade by connecting a qualifying Tradier Brokerage account! Learn more.

Position Limit Warnings

Position limit warnings occur when you reach the maximum allowable positions for a bot or the trading day.

Bots have safeguards and limits that alert you when an automation encounters a warning. Daily and total position limits prevent overtrading by limiting the max number of positions a bot can have open at one time and in a single trading day.

Daily position limit

The daily position limit is the number of positions a bot can open in a single trading day. The “daily position limit” warning occurs when a bot attempts to add a position that exceeds the number of new positions allowed.

Daily position limit

Total position limit

The total position limit is the max open positions a bot can have at one time. The “total position limit” warning occurs when a bot attempts to add a position that exceeds the maximum number of positions allowed for the bot.

Total position limit
There is no limit on closing positions. Once a daily position limit is reached, the bot won't open new positions unless you edit the safeguards. If a bot is at its max position limit and closes a position, new room becomes available to add a new position, assuming the daily position limit has not been hit.

You can always edit your bot's position settings in the Safeguards section of the Settings tab.

Safeguards Position Limits

FAQs

Why do bots have position limits?

Bots have a daily position limit for managing risk.

What does a "Daily position limit" warning mean?

A "daily position limit" warning 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 position limits?

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

Will I be notified if a bot runs into a position limit warning?

Yes.

Do 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.

What does the "Total position limit" warning mean?

The "total position limit" warning means that the bot has reached its limit for the total positions it can have open at one time.

Are "position limits" by symbol or by total bot positions regardless of symbol?

Total bot positions regardless of the symbol.

Does a "Position Limit" warning prevent me from closing positions in any way?

No.

Was this helpful?

Please share feedback with our team.
Author
Kirk Du Plessis
Founder
No items found.

Find new trade ideas

Option Alpha calculates probabilities for millions of potential options positions using live market data so you can find new ideas without the guesswork.
MacBook mockup