Stocks & ETFs: strategy, entry and exit

Updated: October 2, 20266 min read

1. Overview

Since version 2.0 the OptionsApp trades stocks and ETFs through Interactive Brokers in addition to options. The setup is found under "Configuration" in the group "Stocks & ETFs", tab "Seasonals & Signals".

A strategy there is a table. Each row is a separate planned trade: a symbol, a direction, a quantity, a rule for the entry, a rule for the exit and, if wanted, a profit target and a stop loss. There is no trade template as with options. Everything a trade needs is in its row.

The timing logic is built for US exchanges. All times are New York time, and the trading calendar is the NYSE calendar. The intended use is trading US stocks and US ETFs.

2. Creating and activating a strategy

At the top of the tab, "Selected Strategy" shows the current strategy. The buttons next to it add, rename, duplicate or delete a strategy. Several strategies can be active at the same time, each with its own account.

Each strategy has three settings:

"Activate" switches the strategy on. Only an active strategy trades its rows.
The account selection next to it sets the Interactive Brokers account the strategy trades in.
"Max. open Trades" limits how many trades of the strategy may be open at the same time, across all rows (1 to 999). Once the limit is reached, the strategy only opens again after a trade has closed.

In addition, each row has its own switch in the "State" column. A row only trades when both the strategy and the row are active.

3. Adding a row

The plus icon above the table adds a new row and opens the search for the security. The search finds everything Interactive Brokers lists as a stock, including ETFs. TWS must be connected for the search. Without a connection, only symbols that have been used before are available.

The columns of the table:

"Symbol": the security of the row.
"Side": "BUY" opens a long position, "SELL" a short position (short sale). One click on the cell switches the direction. Whether a stock can be sold short is decided by Interactive Brokers.
"Qty": the quantity, whole shares only.
"EST. ALLOC": the estimated value, calculated from quantity and last closing price and converted into the display currency. The column is for orientation only.
"Entry" and "Exit": the rules for entry and exit (sections 4 and 5). The cell's tooltip shows the rule in plain words.
"Target" and "Stop": profit target and stop loss (section 6).
"Exec.": the order type. The OptionsApp always trades stocks and ETFs with "Market Order".
"State": the switch of the row. "Active" means on, "Inactive" off. "Never runs" means the schedule can never be executed.

Selected rows can be duplicated or removed with the buttons above the table.

A row can only be switched on once symbol, quantity and entry rule are set. If the OptionsApp detects a schedule that would never run, the row stays off and a message names the reason. Examples are a date on a weekend, a time outside trading hours or an exit before the entry.

Two rows may trade the same stock in the same direction. Opposite positions in the same stock in the same account, long in one row and short in another, are only opened with the approval "Overlapping positions across trades" (see Approvals in the user portal).

4. Entry

One click on the "Entry" cell opens the entry settings. "Accept" applies them, "Cancel" discards them. "Mode" offers five types.

4.1 Every Weekday

The row opens a trade on every trading day at the set time.

4.2 Specific Date

A single entry on a fixed date ("Date").

4.3 Day of Month

An entry on a fixed day of the month ("Day", 1 to 31), like a standing order. The value 31 stands for the last day of the month, also in shorter months.

4.4 Day of Year

An entry on a fixed day of the year ("Month/Day"), for example for seasonal patterns.

If the day of "Day of Month" or "Day of Year" falls on a weekend or a holiday, "If closed" decides: "Next trading day" moves the entry to the next trading day (default), "Previous trading day" to the trading day before, "Skip (no trade)" drops it.

4.5 Time

For these four types, "Time" sets the time of day. The default is 09:35 New York time. The time must be within the regular session from 09:30 to 16:00.

The OptionsApp opens within five minutes after the set time. If the OptionsApp or TWS is not connected during that time, there is no entry that day. Each row opens at most one trade per day.

4.6 Filter

Under "Condition", an entry condition of the type filter can be added. The row then only opens if the condition is met at entry time. The OptionsApp checks the filter at each full minute during the five minutes after the entry time. If it is not met during that time, there is no entry that day. How conditions are created is described in Stocks & ETFs: conditions and indicators.

4.7 On Condition Only

There is no schedule here. The row opens as soon as an entry condition of the type trigger fires. This type only appears once at least one such condition exists.

The OptionsApp checks the trigger Monday to Friday during the regular session from 09:30 to 16:00 New York time. "Max./day" limits how many trades the row may open per trading day. The default is 1, "Unlimited" removes the limit.

Webhooks also appear in the list of conditions. For stocks and ETFs, however, a webhook does not open a trade.

5. Exit

One click on the "Exit" cell opens the exit settings. "Mode" offers these types:

5.1 Intraday

Exit on the same day at the set time. The default is 15:55 New York time. The time must be after the entry time.

5.2 N Days

Exit after a fixed number of days ("Hold", 1 to 365) at the set time. Only trading days count, weekends and holidays do not.

5.3 Specific Date

Exit on a fixed date. This type is only available if the entry is also "Specific Date".

5.4 Day of Month and Day of Year

Exit on the next matching day of the month or year after the entry, with the same "If closed" rule as for the entry.

5.5 Until Condition

The position stays open until an exit condition of the type trigger fires. There is no time-based exit as a fallback: if the trigger does not fire, the trade only ends through profit target, stop loss or a manual close. This type also only appears once a matching exit condition exists.

5.6 General notes on the exit

If the entry order has not been filled by the exit time, the OptionsApp cancels it. If an exit falls into a time when the exchange is closed, the OptionsApp carries it out at the next open.

Combining "Every Weekday" with "N Days" opens a new trade every trading day while the older ones are still running. "Max. open Trades" sets how many of them may be open at the same time.

6. Profit target and stop loss

"Target" (profit target) and "Stop" (stop loss) are set per row as a percentage of the entry fill price. The list offers "None", 30, 50 and 70, any other value can be typed in. "None" or 0 means no target or no stop. New rows start without either.

An example: a purchase at 100.00 USD with target 10 and stop 5. The profit target is then 110.00 USD, the stop loss 95.00 USD. For a short position it works the other way round: the target is below and the stop above the entry price.

As soon as the entry is filled, the OptionsApp places target and stop as orders with Interactive Brokers. Both are linked to each other and also stay active overnight. Details are in Stocks & ETFs: orders and running trades.

There is no trailing stop, no fixed price level and no staged targets for stocks and ETFs. Target and stop of a running trade cannot be changed in the dashboard.