Execution Logic (Entry & Exit Behavior)

1. Overview

Entry and Exit Behaviour control how OptionsApp executes orders when opening (Entry) and closing (Exit) a trade. A trade always comprises the entirety of Legs defined in a Trade Template (regardless of number or constellation) and is sent to TWS as a single unit.

The settings determine how the app handles price discovery and order adjustments when a Limit Order is placed.

2. Entry Behaviour

Entry Behaviour defines how OptionsApp attempts to execute an opening order. For this, the following settings can be configured separately for each Trade Template:

Number of Attempts: Specifies how many times the price should be adjusted if the order is not executed immediately. Each attempt means a new price change to achieve execution.

Wait in Seconds:
Determines the waiting time in seconds after an adjustment before the next attempt is started. The next price adjustment only occurs after this period has elapsed.

Adjustments:
Defines the amount of price change per attempt. Example: For SPX options, an adjustment of 0.05 USD may be typical.

Start at Price:
Determines the starting point for price placement. The following options are available:

• Bid
• Between Bid and Mid
• Mid
• Between Ask and Mid
• Ask

The choice depends heavily on the type of trade. Complex strategies like Butterflies or Ratio Spreads often require a different approach than simple positions. Trades opened in less liquid option chains also require a specific approach. See also: Risks when trading illiquid options

3. Exit Behaviour

Exit Behaviour governs the closing of positions via Limit Orders and must first be explicitly selected:

It only applies when a Limit Order is selected for an Exit Condition (e.g., Early Exit or Delta-based closing). It is not relevant for Market Orders.

Number of Attempts, Wait in Seconds, and Adjustments:
These parameters correspond exactly to Entry Behaviour but are applied to the closing order.

Market Order after Last Attempt:
This is optional and, when activated, means: If OptionsApp has not been able to achieve a closing through the specified price adjustments, a Market Order will be sent at the end to ensure closure.
Note: This can result in less favorable executions and should be used consciously or not used.

4. Summary

• Entry Behaviour: Control of order execution when opening a trade (number of attempts, wait time, adjustment steps, start price).
• Exit Behaviour: Corresponding control when closing trades via Limit Orders, with optional Market Order as fallback.
• Both mechanisms ensure that orders are flexibly adjusted to the market to ensure the most reliable execution possible.
• The required behavior when opening and closing trades depends on the respective Underlying and the configured trade. It is the responsibility of the user to make the appropriate settings.