Strategy Setup
Last updated
Last updated
The automation platform can be found under the "Trade" dropdown on Option Omega.
You can choose:
Live- to view the current activity of the platform
Strategies- to view and manage your strategy library
Reporting- to generate and view information about the automations
The process of automation beings with creating a strategy. There are two choices: creating a strategy from scratch or creating a strategy from a backtest.
If you wish to create a strategy from scratch, simply click "+ New Strategy" in the Trade/Strategies page.
If you wish to create a strategy from a backtest, simply click "Create Automated Strategy" from a backtest.
The first option when a new strategy is created is to select if that strategy is active or not. An active strategy will be managed by the automation platform. An inactive strategy will not.
After the strategy is named, you can select which brokerage account you want the strategy to be automated in.
Like a backtest on the platform, you can chose to apply an existing tag or add a new tag to the strategy.
In the automation platform, you must chose one of three allocation types: percentage, fixed value, and fixed quantity.
Percentage will use the % of the account you have selected.
Fixed value will use a Max Allocation for the trade. This will cap the value of the entire trade regardless of the contract quantity.
Fixed Quantity will cap the number of contracts to the specified amount in the "Max Contacts Per Trade" field.
The user has multiple choices for strike conflict resolution. If any strikes are conflicted, the default behavior is to skip the trade. However, the user can also select "Move Conflicted Strikes", which is detailed in the in-app tooltip. This selection will allow the software to attempt to move any conflicted strikes to the next nearest strike using the leg selection criteria: fixed price, offset, deltas, etc. For parent/child legs if a parent conflicts, any children will automatically move with it. if a child conflicts, the parent will only be moved if the exact offset (green padlock) is toggled on
The entry price of the trade that the automation platform will submit as a limit order is determined by the NBBO at the opening of the trade. The entry execution field allows you to configure the speed and price adjustment. For example, you can set a trade to adjust .10 every 10 seconds.
Note, the interval and max attempts fields must be less than 55 seconds when multiplied together.
The exit price of the trade that the automation platform will submit as a limit order is determined by the NBBO at the opening of the trade. The exit execution field allows you to configure the speed and price adjustment. For example, you can set a trade to adjust .10 every 10 seconds. Additionally, you have the option to switch to a market order after a certain number of attempts (Note— the market order ability is only available on certain order types on certain brokers. Tradier and ToS/Schwab allow market orders to close options spreads via API; tastytrade does not currently support market orders for multi-legged trades).
Note, the interval and max attempts fields must be less than 55 seconds when multiplied together.
Selecting "Ignore Bidless Longs" will allow the platform to bypass closing the bidless longs on exit execution.
Execution override allows you set a custom exit if you have an exit condition that you want to treat differently from the standard exit execution.
Users can specify a "starting offset" as both entry and exit execution parameters; this value can be positive or negative, and will instruct the automation platform to start the order fill sequence above/below the current mid price by the value specified.
Note— this adjustment is an absolute value, not a directional offset
The platform will not adjust to credit / debit - it simply adds the offset to the current mid price at entry.
Thus, if you are selling a $3.00 credit spread, a $0.10 offset will result in a $3.10 initial (relaxed) entry, whereas a $-0.10 offset will result in a $2.90 (aggressive) entry.
Conversely, if you are buy a $3.00 debit spread, a $0.10 offset will result in a $3.10 initial (aggressive) entry, whereas a $-0.10 offset will result in a $2.90 (relaxed) entry.
Additional note: there is a functionality for configuring the entry time in entry execution,.
