How The Options Auto Trader Works

Let's dive into the specifics of how the auto trader works so that you can understand it, trust it and use it to help you manage your trades.

Step #1: Auto Traders Look For Entries Every 10 Minutes

The auto trader that you create is not a black box, placing trades for an unknown reason or strategy. The auto trader will only do what you tell it to do based on the settings and rules that you create for it. Every 5 minutes the auto traders monitor the market looking for an entry based on the rules that you set (typically entry day, entry time, options strategy, minimum credit, etc).

👍 That's right! No more watching the market 24/7 because you have an assistant (auto trader) that does what you want every time without emotion to get you in high win rate trades

Step #2: Automated Order Execution

Once the entry criteria for the auto trader has been hit, the auto trader will trigger your broker to enter a trade following a very systematic and safe execution process.

1. Create The Order - Create an options order based on the strategy tied to the auto trader
2. Validate Important Trade Details - Checks PDT rules, minimum credit and profit rules, etc
3. Submit A Dry Run Order - Trigger the broker to submit a test order to verify if your account can place the trade
4. Check Buying Power Limit For Account - Checks that entering the trade would not exceed your accounts buying power
5. Check Buying Power Allocation For Auto Trader - Checks that entering the trade would not exceed the buying power allocation you set for the auto trader
6. Live Trade Execution - If all the previous steps and validations were passed, then it will trigger the broker to place a live trade

Step #3: Auto Traders Monitor Your Open Trades Every 5 Minutes

The auto trader will manage your open trades (whether placed by the auto trader or imported into the auto trader) based on the management rules (take profit, stop loss, etc) that you set. If you are trading futures, the auto trader will even monitor your position overnight. This ensures that your trades are protected and safe, no matter the time of day.

👍 That's right! You will be able to close winning trades even if you are busy at work or spending quality time with your family AND you'll be able to cut losers without having to overcome your crazy emotions that beg you to stay in losing trades (even though it almost always leads to a bigger loss).

Miscellaneous Notes

If you close your trade manually through the broker, the auto trader will update that in our system automatically for you 😊

If you option is about to expire in the money (meaning you are at risk of assignment and losing thousands of dollars), the auto trader will close your position one hour before the market closes if your option is in the money 💯

Have any other questions, shoot me an email at hello@optionsautotrader.com

TERMS OF SERVICE: Please be aware that continued use of the Options Auto Trader is subject to our Terms Of Service. If you have any questions or wish to review these terms, feel free to visit the website.