Auto Trade Preference Settings
Simplify your trade automation with the CandeFi Auto Trade Settings:
Found under Account Settings or the Settings icon next to the Bot window.
Allows users to pre-fill default values to apply to Trade Signals.
CandeFi calculates and applies these values to the signals before sending them for Broker execution.
Provides consistency, accuracy, and speed in trade execution.
Benefits of Using Auto-Trade Preference:
The burden of auto trading is significantly reduced, freeing up your time to refine and optimize trading strategies.
Enables you to find the best trade entries and exits.
Simplifies and streamlines the auto trading process.
How to Use Auto-Trade Preference:
Navigate to Account Settings or the Settings icon next to the Bot window.
Select the Auto-Trade Preference option.
Fill in the default values you want to apply to Trade Signals.
CandeFi will automatically calculate and apply these values to the signals before executing them.
Auto Trade Parameter Description
Lot Size (Max Quantity)
The maximum amount you are willing to invest in a new auto trade is determined by this number. Based on this amount, the system automatically calculates the option quantity to ensure that your spending limit is not exceeded. This eliminates the need for manual quantity calculations, streamlines the trading process, and minimizes the risk of overspending.
Example:
Max Quantity = $500
Option premium = $2.00 (since the lot size of Options is 100, then the price for a contract is $200)
Quantity calculation:
500 / 200 = 2.5
Final Quantity: 2
(rounded to the nearest lower whole number)
Min Stock Price
The lowest allowable stock price to open a trade. If a stock's price falls below this number, the trade signal will be skip.
Max Stock Price
The highest allowable stock price to open a trade. Prices exceeding this amount will not be traded.
Min Premium
To prevent trades from being executed in poor liquidity markets, traders can set a minimum Options Premium threshold. Trades with premiums below this threshold will be automatically skipped.
Max Premium
To prevent excessive premium payments or as a safeguard against assets with volatile prices. Max Premium parameter is set. If the premium surpasses this threshold, the trade signal is skipped.
Expiry Type
Closest: represents the nearest available option expiration date.
For instance, in the case of SPY, if the signal is received before 2pm EST, the expiration date will be the same day. However, if the signal is received after 2pm, the expiration date will be the next trading day's expiration date.
Friday:
If the signal is received before 2 pm on a Friday, the option will expire on that same Friday (End of Week Expiry).
If the signal is received after 2 pm on Friday, the option will expire on the next week's Friday.
Next Week Friday: The expiration is set for next Friday.
End of Month Friday: The expiration is set for the last Friday of the current month.
Manual Date: This option allows traders to set the expiration date manually from a dropdown.
Strike Price Type
Traders can select from three different strike price types:
Closest: The strike price closest to the current stock price is set as the strike price for the trade.
In The Money: This is the strike price just below the current stock price. It should be a lower number than the current stock price.
Out Of The Money: This is the strike price just above the current stock price. It should be the next strike price higher than the current stock price.
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