In Options Auto Trader, you can enhance your trade management by converting a take profit into a trailing stop loss once specific profit criteria are met. This allows you to lock in profits while giving your trades room to continue running if the market moves in your favor. Here’s how to set up this advanced management strategy.
To enable the Take Profit to Trailing Stop feature, you’ll need to access the advanced management settings for your auto trader:
Log into your Options Auto Trader account.
Navigate to the Auto Trader page and either create a new auto trader or edit an existing one by clicking the gear icon.
Scroll down to the Advanced Management Strategies section.
Within the Advanced Management Strategies, you’ll find an option to turn your Take Profit into a Trailing Stop once a specific profit criterion is met.
Select the Conversion Option:
Look for the setting labeled "Convert Take Profit to Trailing Stop" and enable it by selecting the checkbox or toggling the switch.
Set Your Conversion Criteria:
Choose the profit metric that will trigger the conversion. You can set this based on:
Profit Percentage: For example, when the trade reaches 50% profit.
Profit Dollar Amount: For example, when the trade gains $200.
Define the Trailing Stop Loss:
Once the take profit converts to a trailing stop, you’ll need to specify the trailing stop parameters. For example:
Trailing Percentage: The trade will close if the price moves against you by a set percentage (e.g., 10%).
Save your settings to activate the feature.
Once your take profit converts into a trailing stop, the system will dynamically adjust the stop loss as the trade moves in your favor. This ensures that you continue to lock in profits while still allowing for potential additional gains.
Example:
You set your take profit to trigger a conversion at $100 profit.
Once the trade reaches this $100 profit level, the system converts the take profit into a $50 trailing stop loss.
If the trade moves in your favor to $150 profit, the trailing stop adjusts to protect a minimum of $100 profit.
If the trade reverses by $50, it exits automatically, locking in your trailing stop value.
You can adjust the trailing stop parameters at any time by editing your auto trader settings:
Go to the Auto Trader page and click the gear icon for the bot you want to edit.
Modify the profit criteria or trailing stop parameters in the Advanced Management Strategies section.
Save your changes.
Turning a Take Profit into a Trailing Stop allows you to optimize your trade management by locking in profits while still taking advantage of favorable market movements. By configuring this feature in the Advanced Management Strategies, you can customize your trading approach to align with your goals and risk tolerance.
If you have any questions or need further assistance setting up this feature, feel free to contact our support team.
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.
