Condition: Movement Since Trade Opening
1. Overview
The Movement Since Trade Opening Condition allows you to monitor price movements since a trade was opened. This lets you define exit conditions that don't consider the current market level or daily performance, but exclusively the change in the Underlying since the trade's entry time.
The function is available for all Underlyings that can be selected in OptionsApp. Additionally, VIX can be selected for all Underlyings.
The Movement Since Trade Opening condition is found exclusively in Exit-Conditions, as it doesn't make sense as an Entry-Condition.
2. How It Works
With this condition, the entry price of the selected Underlying at the time the trade was opened is stored. From this reference point, OptionsApp calculates the relative or absolute change.
Two measurement methods are available:
- Percentage: Change in percent since Trade Opening
- Points: Change in absolute points since Trade Opening
3. Configuration
The condition must first be created in the "Configurations" tab under Exit-Conditions before it can be assigned to a trade.
After selecting the Movement Since Trade Opening indicator, you can configure the following parameters.
- Underlying: Selection of the base asset (e.g., SPX, SPY, VIX)
- Condition: Movement Since Trade Opening
- Unit: Percentage or Points
- Operator: <; <=; >; >=
- Threshold: Comparison value (e.g., 0.50% or 20 points)
Additionally, you could link further conditions. A possible example would be combining an SMA filter with the Movement Since Trade Opening.
4. Practical Examples
4.1 SPX: Decline of 0.5% since entry
A trade should be closed as soon as the SPX has fallen by at least 0.5% after trade opening.
- Underlying: SPX
- Unit: Percentage
- Operator: <=
- Value: -0.50
Logic: The trade is closed regardless of the current day's performance as soon as the price declines by 0.5% since entry.
*(see screenshot example "SPX -0.5%")
4.2 VIX: Increase of 20 points since entry
A hedging strategy on the VIX should automatically end as soon as the VIX rises by 20 points after trade opening.
- Underlying: VIX
- Unit: Points
- Operator: >=
- Value: 20.00
Logic: Once the VIX reaches this threshold, the trade is closed. This behavior can be used for example for take-profit logic in hedge strategies. Assuming the VIX was at 15.50 points when the trade was opened, it would automatically be closed when reaching 35.50 points.
*(see screenshot example "VIX +20 Points")
5. Notes
- The condition only considers the movement since Trade Opening.
- Combinations with other Exit-Conditions are possible.
- The condition is only useful as an Exit-Condition.