Discretionary entry, fully automated exit

[Skynetgen]

I been trading intraday options using TOS. My system is developed to the point where exit strategy is algorithmically clean . My P&L would likely benefit if I take emotions out of exit management and spend time focusing on markets and entries.

However seems I cannot do that in TOS -not only thinkscript is fairly limited, there is no automated order placement and execution. I need to be able to script placing orders for options based on rules for the underlying. It has to use certain positions I already opened . And I need to be able to flag those as such - not just blindly run exit for all positions. And no automated entries of any kind.

Which platform allows to do that? Hopefully matching TOS ability for custom scanners and indicators.

 

[JSOP]

I been trading intraday options using TOS. My system is developed to the point where exit strategy is algorithmically clean . My P&L would likely benefit if I take emotions out of exit management and spend time focusing on markets and entries.

However seems I cannot do that in TOS -not only thinkscript is fairly limited, there is no automated order placement and execution. I need to be able to script placing orders for options based on rules for the underlying. It has to use certain positions I already opened . And I need to be able to flag those as such - not just blindly run exit for all positions. And no automated entries of any kind.

Which platform allows to do that? Hopefully matching TOS ability for custom scanners and indicators.

For TOS, there is automated order placement, very limited yes but it can be done if you just play around it a bit. You need to use what's called conditional orders. When you are placing the order for the options, click on "Edit" and on the edit line, click on the little "*" that's right beside "Best" for exchange and on the screen that shows up, go to "Symbol" and type in the symbol of the underlying and then in the next column, select "Study" in the drop-down menu and click on "Edit", click on "Delete" to get rid of whatever is there and click on the tab "Thinkscript Editor" and put in whatever code you need for the conditions you want to execute the orders on and click on "Ok" and "Save" and that's it. I haven't done conditional orders for long, but for the last 2 times, my conditional orders were executed fine exactly according to my codes although it's a bit slow so if you have a market order to be executed, just be prepared that you are gonna quite a bit slippage.

 

[Robert Morse]

I been trading intraday options using TOS. My system is developed to the point where exit strategy is algorithmically clean . My P&L would likely benefit if I take emotions out of exit management and spend time focusing on markets and entries.

However seems I cannot do that in TOS -not only thinkscript is fairly limited, there is no automated order placement and execution. I need to be able to script placing orders for options based on rules for the underlying. It has to use certain positions I already opened . And I need to be able to flag those as such - not just blindly run exit for all positions. And no automated entries of any kind.

Which platform allows to do that? Hopefully matching TOS ability for custom scanners and indicators.

On a side note, automated option trading is materially more difficult than equity trading. In a timely basis you need to have a process to value the options vs the current equity price and then send your order properly tagged as open or close. You need to be able to quickly cancel/replace when the stock moves. Then you have to track the number of orders you enter each month. You will want to keep that to less than an average of 390 orders per day or you will lose your customer priority status.
https://www.cboe.com/publish/RegCir/RG16-064.pdf

 

[Skynetgen]

In a timely basis you need to have a process to value the options vs the current equity price and then send your order properly tagged as open or close. You need to be able to quickly cancel/replace when the stock moves.

Exactly. Thats why it has to be a platform supporting fairly sophisticated custom scripts. TOS thinkscript and its conditional orders do not allow order management to this degree.

I need to evaluate slippage between limit vs market orders - options are much less liquid than stocks. Need to have it adjust order if its not filled within timeframe. And it takes a lot of focus to manage open position, but all the rules for it are simple and straightforward

Then you have to track the number of orders you enter each month. You will want to keep that to less than an average of 390 orders per day or you will lose your customer priority status.
https://www.cboe.com/publish/RegCir/RG16-064.pdf

Thank you for this information. That would not be a problem. even if multi tiered entries and exits I am far below 390/day orders limit

 

[Robert Morse]

Exactly. Thats why it has to be a platform supporting fairly sophisticated custom scripts. TOS thinkscript and its conditional orders do not allow order management to this degree.

I need to evaluate slippage between limit vs market orders - options are much less liquid than stocks. Need to have it adjust order if its not filled within timeframe. And it takes a lot of focus to manage open position, but all the rules for it are simple and straightforward



Thank you for this information. That would not be a problem. even if multi tiered entries and exits I am far below 390/day orders limit

Expensive, and we do not offer it, but Actant ExStream has built in scripting and works well. I used Actant Quote as a MM and liked it very much.
http://www.actant.com/exstream/

Developing this on your own is very hard, time consuming and still might not get you want you need.