You can set up entry rules for your Auto Trader based on how much a stock has moved for the day by using the Minimum Stock Percentage Movement and Maximum Stock Percentage Movement settings. These rules allow you to enter trades based on the stock's daily movement, whether you're looking for a certain level of price drop or increase.
Step 1: Access the Auto Trader Settings
You can set these rules either while creating a new Auto Trader or by editing an existing one.
For this example, we are in the Auto Trader Creator Flow, where you're setting up a new AutoTrader.
Step 2: Navigate to Advanced Entry Settings
In the Entry Rules section, go to Advanced Entry Settings.
You will see options for Minimum Percentage Stock Move and Maximum Percentage Stock Move.
Step 3: Set the Minimum Percentage Stock Move
The Minimum Percentage Stock Move is the percentage that the stock must be greater than or equal to enter the trade.
For example, if you want to sell a call credit spread on a stock that has risen more than 2%, set the minimum to 2%. This ensures the bot will only enter the trade if the stock has moved greater than or equal to 2%.
Step 4: Set the Maximum Percentage Stock Move
The Maximum Percentage Stock Move is the percentage that the stock must be less than or equal to enter the trade.
For example, if you want to enter a trade after a stock has dropped more than 2% in a day, set the maximum to -2%. This means the stock’s percentage daily move must be less than or equal to -2% to enter the trade.
Step : Save the Settings
After adjusting the minimum and maximum percentage moves, save your settings. This will apply the rules to your Auto Trader.
Conclusion:
By setting the Minimum and Maximum Stock Percentage Movement, you can tailor your Auto Trader’s entry conditions based on the stock’s movement for the day. This feature allows you to implement more specific and effective trading strategies.
Cautionary Notes:
Risk of Over-Setting Movements: Setting very strict percentage thresholds may limit the number of trades your Auto Trader enters. Ensure that the settings are realistic and aligned with your trading strategy.
Monitor Market Volatility: Keep in mind that stock prices can fluctuate rapidly. Always check your settings to ensure they are appropriate for the current market conditions.
Avoid Overtrading: While setting a percentage-based entry rule is useful, don't rely solely on these conditions. It's important to integrate other factors (such as fundamental analysis) into your trading strategy to avoid overtrading or entering unwise positions.
Double-Check Settings: Ensure that the minimum and maximum percentages are set appropriately to avoid accidental trades. A small typo in the percentage value could trigger trades you don't intend to make.
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