Bot Exit Conditions Guide

Bot Exit Conditions

Once a bot has an open position, the bot can either hold the position all the way to expiration, or it can maintain a profit target and/or stop loss. If you wish for the bot to utilize a profit target or stop loss, you'll need to define this under the bot's Exit Condition.

If you want the bot to just hold any positions all the way to expiration, you don't need to define Exit Condition. Just leave it blank, and the bot will hold positions to expiration!

Slippage is likely with stop losses. You can lose significantly more on your position than your designated stop loss (percent, delta, or in-the-money). Bot stop losses are not recommended for rapidly moving markets.

Profit Target (Optional)

If you would like to close the position at a certain profit target, you may enter that here. When a profit target is set, the bot will enter a closing order for the position immediately after it is entered. The bot will manage that closing order until the position is closed. You should not manually adjust the closing order from your brokerage account, or the bot may stop working.

Changing the profit target on a bot will not adjust any currently working orders for open positions. Any open positions will continue to use their original profit target. If you wish to adjust the price on a closing order that is currently working, you can do so by viewing the order at Whispertrades.

Stop Loss (Optional)

If you would like to close the position at a certain stop loss, you may enter that here. When a stop loss is defined for a bot, the bot will monitor the position's current profit level, and if/when it reaches your designated stop loss percent, the bot will close the position at the best available price.

Unlike with bot profit targets, stop losses do not utilize standing closing orders. These are dangerous with options and are prone to poor or premature exits. Bots monitor market prices every 30 seconds. If the market price meets your stop two out of three of these checks in a row, the bot will trigger the stop loss by beginning a forced closing process. This means that you can meet and exceed your designated stop for 60 seconds or longer before your bot closes the position.

Due to the nature of moving markets and slippage, the price at which your bot exits a position could be significantly beyond your designated stop loss. To anticipate and prepare for this slippage, you may wish to configure a bot stop loss below your desired level. The actual exit price will likely be closer to your desired exit if you do this.

Unlike with profit targets, changing the stop loss on a bot will apply to currently open positions.

Delta Value (Optional)

If you would like to close the position when it reaches a particular delta value, you may enter that here. With this set, when your position reaches this delta value based on current market conditions, the bot will start a process to close your position at an ideal price based on current market value. Bots monitor market prices every 30 seconds. If the market price meets your stop two out of three of these checks in a row, the bot will trigger the stop by beginning a forced closing process. This means that you can meet and exceed your designated stop for 60 seconds or longer before your bot closes the position.

Unlike with profit targets, changing the delta value stop on a bot will apply to currently open positions.

In-the-money (Optional)

If you would like to close the position when goes in-the-money (ITM) by a certain percentage value, you may enter that here. With this set, when your position reaches this ITM level, the bot will start a process to close your position at an ideal price based on current market value. Bots monitor market prices every 30 seconds. If the market price meets your stop two out of three of these checks in a row, the bot will trigger the stop by beginning a forced closing process. This means that you can meet and exceed your designated stop for 60 seconds or longer before your bot closes the position.

Unlike with profit targets, changing the in-the-money percent stop on a bot will apply to currently open positions.

If you opt for no exit condition (profit target, stop loss, delta, or ITM percent), the position will be held until expiration. All positions held to expiration are mark closed shortly after market close on expiration day. This includes any AM expiration options. These technically expire at the open of the session, but Whispertrades will not mark those closed until after market close. Brokers often do not clear AM expiring positions or their associated buying power during the day, so WT bots will consider those positions open during the day.

Close Short Strike Only (Only Applicable to Credit Spreads)

If your bot submits a closing order for a spread, and you only wish for the bot to close the short strike (leaving the long strike on until expiration), you may optionally select this option. If you have a credit spread bot without this option selected, then any closing orders will buy back the entire spread (short and long strike).