Bots always keep an eye on your positions. You can monitor multiple position legs and make specific decisions based on the underlying price relative to the option legs.
For example, you can use a monitor automation to check if an iron condor’s short strikes are challenged. Grouping both short strike legs of the iron condor with this decision recipe lets you monitor both sides simultaneously, so you can take action if the position’s underlying price has breached a short strike.
The bot can evaluate if the underlying price is above the short call or below the short put with grouped decisions. You may want to manage the position differently if the position is challenged and approaching expiration.
Now you can rest easy knowing grouped decisions monitor all your option legs simultaneously, and bots will manage positions as soon as they become challenged.
The text is the output of AI-based and/or outsourced transcribing from the audio and/or video recording. Although the transcription is largely accurate, in some cases, it is incomplete or inaccurate due to inaudible passages or transcription errors and should not be treated as an authoritative record. This transcript is provided for educational purposes only. Nothing that you read here constitutes investment advice or should be construed as a recommendation to make any specific investment decision. Any views expressed are solely those of the speaker and should not be relied upon to make decisions.
In this video, I want to show you how to use grouped decisions for managing multiple position legs inside of your monitor automations. This is really powerful because it allows you to manage individual legs of a particular option strategy and make certain decisions based on the information for particular legs.
Now inside of this iron condor manager that we have right here, I'm repeating through each iron condor position in this particular bot. And the goal of this iron condor manager is to outlay all of the different possible scenarios in which I would allow the bot to close or manage the position.
Notice that as I'm repeating through each iron condor position, I'm first checking in this example if the position expires in less than five calendar days.
If it does expire in less than five calendar days, I want the bot to go down the yes path and manage the position differently because the position's nearing expiration.
If the position doesn't expire in less than five calendar days, then it's free to go down the no path and manage the position using different decision criteria like absolute profit targets in our smart stop feature. That's because the position has a lot of time until expiration, and I don't need to manage the position using different decisions until it gets inside five calendar days.
Once it's inside five calendar days, I'm first going to have the bot check and see if the position has reached a near expiration profit target. I might be willing to accept a smaller profit target than I would have earlier in the expiration process if we're inside five days. And so if we hit that near expiration profit target, I'm just simply telling the bot to close the position.
But what happens in this scenario where we're inside five calendar days from expiration for this iron condor position, and we haven't hit a near profit expiration target? This means that the position is still not profitable enough for me to close out, but it also is running out of time. This is where we could use a grouped decision to manage or monitor multiple legs of our iron condor strategy.
So down the "no" path if we don't have a profit yet, we might want the bot to take other decisions. In this case, we could use the recipe to look at the bot's position legs, check to see if the position is getting challenged on either short call strike or a short put strike of our iron condor. We're going to use this recipe here that checks to see if the position's underlying price is above or below one of our legs.
Again, you can use a number of different leg position recipes inside of your bot as well. We'll connect this to whatever position the bot is currently looping through, and then we're first going to check and see if the underlying price is above our short call strike.
If the underlying security is above our short call strike, that definitely means we're getting challenged to the upside of our iron condor, then we might want to close the position.
So we're going to go ahead and add this to our decision recipe. But that's not the only one we want to use. We also might want to check and see if we're also, or alternatively, getting challenged on the put side of our potential iron butterfly position.
Note that we can check both of these using a grouped decision to monitor multiple legs of the same strategy. So we just simply add another decision recipe here and then go down to our decision recipe for checking to see if the underlying price this time is now below my short put strike.
Notice that I just simply changed all the variables here in the natural language recipe. And once I'm good to go, I simply hit "save." Now, there's only one other thing I have to change inside of this grouped decision block.
The decision block will follow the yes path currently if both of these decisions are true. But they can't both be true at the same time for an iron condor position. So I simply want to swap this to an or statement.
I'm going to tell the bot, in this grouped decision block, to check and see if the positions underlying price is above the short call strike or if the underlaying's price is below my short put strike.
So if I'm being challenged either on the call spread side or on the short put spread side of my position, I want the bot to continue down the yes path.
Once I'm good to go, I simply hit save. And now add that new decision to my automation editor.
Now, if I wanted to, I can add another close position action down the yes path. Connect it to whatever position is currently being challenged, and then add that to my automation.
And just like that, I've been able to manage and monitor multiple legs of the iron condor position to check and see if one leg is being challenged or not that would help lead me to managing the position earlier and exiting the position that got challenged.
Again, this is just one of a number of different ways you can use leg position properties inside of your monitor automations.