This guide provides a step-by-step explanation of how to manage trades using either the Mid Price or Guaranteed Price settings in the Options Auto Trader platform.
Navigate to the Create Auto Trader section.
Choose your desired strategy, trade structure, and entry rules.
Focus on the Exit Conditions or Management Rules to define how trades will be managed.
By default, the Manage Trade Based On setting is set to Mid Price.
Mid Price is calculated as the average of the Bid Price (price buyers are willing to pay) and Ask Price (price sellers are asking).
Take Profit and Stop Loss percentages are based on the Mid Price:
This method is fastest and most convenient for most traders.
Recommendation: Keep this default setting unless you are an advanced trader.
Click on the Advanced option under Management Settings.
Scroll to the Manage Trade Based On section to customize settings.
Use the Bid/Ask Price setting if:
You’re trading assets with low volume.
The Bid-Ask spread is large, causing the Mid Price to differ significantly from actual trading levels.
The Guaranteed Price calculates based on:
Bid Price for selling a debit trade.
Ask Price for buying back a credit trade.
This ensures trades are executed at precise levels for Take Profit and Stop Loss.
Mid Price:
Easier to use and sufficient for most traders.
Ideal for high-volume assets with smaller Bid-Ask spreads.
Bid/Ask Price:
Ensures accurate execution during low-volume trading.
Recommended for advanced users handling volatile or low-liquidity assets.
For most users, keeping the default Mid Price setting is recommended.
Use Bid/Ask Price only if you have experience with advanced trading and specific requirements for execution accuracy.
Changing settings without understanding their implications can lead to unintended trade execution issues.
Be cautious when trading low-volume assets, as large Bid-Ask spreads can affect profitability.
Keep the Mid Price setting for most trades to save time and reduce complexity.
Only switch to Bid/Ask Price when trading in low-liquidity markets to avoid execution delays or inaccuracies.
Regularly review the Bid-Ask spread of your chosen assets to determine the best management strategy.
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.
