Trading Behavior

Trading behavior defines how your strategy interprets and executes alerts for each direction (LONG and SHORT).

Overview

Each strategy can handle four alert types:

• Long Entries
• Long Exits
• Short Entries
• Short Exits

For each direction, you configure:

• What entry alerts do
• Whether exits are enabled
• Order types for entries and exits

Entry Behavior

Enter Direction

Standard entry behavior - opens a position in the specified direction.

Example:

• Long entry alert → Open long position
• Short entry alert → Open short position

Use When:

• You want straightforward directional trading
• Alerts clearly indicate entries
• You're trading both directions independently

Exit Opposite

Use entry alerts to close opposite direction positions.

Example:

• Long entry alert → Close any open short position
• Short entry alert → Close any open long position

Use When:

• Your alert source only sends entries (no explicit exits)
• You want to flip positions automatically
• Trading mean reversion strategies

Do Nothing

Ignore entry alerts for this direction.

Use When:

• You only trade one direction
• You want to disable a direction temporarily
• Your alert source sends unwanted signals

Exit Behavior

Enabled

Allow exit alerts to close positions in this direction.

Example:

• Long exit alert → Close open long position
• Short exit alert → Close open short position

Use When:

• Your alerts include explicit exits
• You want full control over position duration
• Trading with defined exit rules

Disabled

Ignore exit alerts for this direction.

Use When:

• Using Exit Opposite on the other direction
• Managing exits manually
• Positions close via other mechanisms (stops, time, etc.)

Configuration Examples

Long Only Strategy

Long Behavior:

• Entry: Enter Direction
• Exit: Enabled

Short Behavior:

• Entry: Do Nothing
• Exit: Disabled

Result: Only trades long positions with explicit entries and exits.

Flip Strategy (No Explicit Exits)

Long Behavior:

• Entry: Enter Direction
• Exit: Disabled

Short Behavior:

• Entry: Exit Opposite
• Exit: Disabled

Result:

• Long entry → Open long
• Short entry → Close long, open short
• Never flat, always in a position

Both Directions with Exits

Long Behavior:

• Entry: Enter Direction
• Exit: Enabled

Short Behavior:

• Entry: Enter Direction
• Exit: Enabled

Result: Full control over both directions with explicit entries and exits.

Mean Reversion

Long Behavior:

• Entry: Enter Direction
• Exit: Enabled

Short Behavior:

• Entry: Exit Opposite
• Exit: Enabled

Result:

• Long entry → Open long
• Long exit → Close long
• Short entry → Close any long, open short
• Short exit → Close short

Order Types

For each entry and exit, choose the order type:

Market Orders

Execute immediately at best available price.

Pros:

• Guaranteed execution
• Fast fills
• Simple

Cons:

• Slippage possible
• Less price control
• May get worse price in volatile markets

Best For:

• High liquidity instruments
• When execution speed matters
• Strategies where exact price isn't critical

Limit Orders

Execute only at your specified price or better.

Pros:

• Price control
• Potentially better fills
• Avoid slippage

Cons:

• May not fill
• Requires monitoring
• Could miss the trade

Best For:

• Lower liquidity instruments
• When price matters
• Strategies with defined price targets

Limit Order Targets

When using limit orders, choose your price target:

Bid Price

Use the current bid price.

Best For:

• Credit spread entries (selling into the bid)
• Short option entries (selling)
• Exiting long positions quickly

Ask Price

Use the current ask price.

Best For:

• Debit spread entries (buying at the ask)
• Long option entries (buying)
• Exiting short positions quickly

Mid Price

Use the midpoint between bid and ask.

Best For:

• Balanced execution
• Normal market conditions
• When spread is tight

Custom Price

Use a fixed price you specify.

Best For:

• Consistent pricing strategy
• When you know your target price
• Mechanical systems

Alert Specified

Price must be included in each alert.

Best For:

• Dynamic pricing from your system
• Custom price calculations
• When alert source provides prices

Multiple Entries

Control whether multiple positions can be open simultaneously:

Disabled (Default)

Only one position at a time:

• Entry → Exit → Entry (repeat)
• New entries rejected while position open
• Clean, simple position management

Enabled (Pyramiding)

Multiple entries allowed:

• Entry → Entry → Entry → Exit all
• Each entry uses your position size
• Increases exposure and risk

Behavior Validation

During alert validation, the system checks:

• Enabled directions have valid alerts
• Exit alerts can find matching entries
• Order types are configured correctly
• Limit order targets are valid

Next Steps

• Create a Strategy
• Understanding Equity Types
• Alert Sources