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Trade entry


1 reply, 2 voices Last updated by John Locke 1 year, 4 months ago
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    • #16085

      John Locke
      Going to The Trading Triangle LIVE 2016Locke In Your Success CoachAPM2Trade JournalsUltimate Income Trader Workshop

      Jason, As you are finding out there are only certain things that you can do as far as orders.

      In back tester we can add virtually any position we want in one order however when we get into live trading we can only do standard orders like singles, verticals, butterflies, broken wing butterflies, calendars, and condors. This being the case you’ll often need to enter the orders as multiple trades. When you do that, there are going to be short periods of time where you’re not in the complete position that you want to be in which may create more Delta than you want for short periods of time. This is simply part of trading, however what you can do is you can make smaller incremental adjustments so that the Delta shift is minimalized. So for example if you were going to enter 10 butterflies and one call then you could enter 5 butterflies, then the call, and then another five butterflies. This is more orders, but it keeps the Delta shift at a minimum. One thing I suggest is that when you’re doing your back testing, that you only put orders in that you can actually execute in your brokerage platform and then forcing yourself to go to the next time frame in the brokerage platform between each order this helps you recognize the challenges, and sometimes benefits of having to do separate orders so that when you do them do that live, it feels more natural.

    • #16079

      Jason Krautkramer
      Points: 282
      Rank: Freshman

      I am wondering the best way to enter initial trades and adjustment trades that involve more than a simple butterfly or vertical. For example, if I want to enter a trade with a wing of two strikes of 5 instead of just ten. Or, when I need to make an adjustment of rolling the bottom wing up and also a vertical to bring the upper wing down. Do I enter them as one trade? In TOS it seems if I choose to enter a butterfly it doesn’t allow me to do them all at once. Once a butterfly is entered, if I try to change a wing, it will change the quantities of the butterfly.

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