Limit the Number of Positions in the Same Ticker

The term “diversification” is thrown around a lot in the world of investing. It means different things to different people. When using a bot, you may not want to trade more than a certain number of positions for an underlying ticker symbol, thus ensuring that all your eggs are not in one basket.

This helpful decision recipe is different from the position limits you set in the global settings. Still, it can accomplish a similar goal if you want to avoid overallocation to a single ticker.

For example, you can use the recipe to reference if the bot has exactly zero positions open in SPY. If there are any open SPY positions, the automation will proceed down the “No” path. This is how you tell the bots exactly how to limit the number of positions for a specific ticker symbol.

This can be very useful if you want to open multiple positions with the same strategy type but spread the positions across different tickers. Custom inputs make the process even more efficient.

Suppose you have a scanner automation that looks to open iron condors, and you’ve reused the same automation twice inside a bot with different underlying symbols. This decision recipe can help ensure that you do not open two iron condors in the same ticker. Instead, you may want to open one position each in different tickers, such as SPY and GLD. 

You can use this recipe to extend the functionality beyond the limits in the global settings. Trade confidently knowing that you have complete control over how many positions are allocated to a single ticker.