Condition: Price Movement
1. Overview
The Price Movement Condition allows you to check price movements of an Underlying within a freely definable Lookback period.
The condition can be used both as an Entry Condition and as an Exit Condition. This allows a trade to be opened or closed depending on whether the Underlying has moved by a defined number of points or a defined percentage within a certain time period.
2. How It Works
OptionsApp checks the price change of the selected Underlying within the configured Lookback period.
Important Note:
It is also possible to select a time span for the Lookback period that extends beyond the trading time of the current trading day so far. In this case, the check also takes into account trading data from the previous trading day.
Example: If you check at 10 AM US time, the US market has only been open for 30 minutes. If you set a Lookback period of 60 minutes, not only the first 30 minutes of the current trading day will be considered, but an additional 30 minutes from the previous trading day. In this example, the Lookback would reach back to 3:30 PM US time the previous day.
The Lookback period is always specified in minutes. By default, a period of 60 minutes is set. This value can be adjusted individually.
The result of the price movement can be evaluated either in points or in percentage.
3. Use as Entry or Exit Condition
Entry Condition
As an Entry Condition, it checks whether a trade should only be opened if the Underlying has moved accordingly within the defined time period.
Exit Condition
As an Exit Condition, it checks whether a running trade should be closed as soon as the defined price movement is met.
4. Configuration
Configuration is done in the Entry or Exit Conditions section.
The following settings must be made:
- Select Underlying
- Select "Price Movement" Condition
- Set Lookback period in minutes
- Select unit: Points or Percentage
- Select operator: greater than or less than
- Enter Threshold or Value
The Underlying can only be set for the currently selected Underlying within whose area you are in the configuration.
5. Points or Percentage
For the unit, you can choose whether the price movement should be evaluated in absolute terms or as a percentage.
Points
With Points, movement is measured in points.
Example: The SPX has risen by 25 points within the last 60 minutes.
Percentage
With Percentage, movement is measured as a percentage.
Example: The SPX has fallen by more than 1% within the last 300 minutes.
6. Examples
Example 1: SPX has risen by at least 25 points within the last hour
A trade should only be opened if the SPX has risen by at least 25 points within the last 60 minutes.
Configuration:
- Underlying: SPX
- Condition: Price Movement
- Lookback: 60
- Unit: Points
- Operator: greater than or equal to
- Value: 25
Example 2: SPX has fallen by at least 1% within the last 300 minutes
A trade should only be opened if the SPX has fallen by at least 1% within the last 300 minutes.
Configuration:
- Underlying: SPX
- Condition: Price Movement
- Lookback: 300
- Unit: Percentage
- Operator: less than
- Value: -1
A value less than -1 means that the Price Movement is less than -1%. This checks whether the SPX has fallen by more than 1% within the defined time period.
7. Summary
Price Movement checks the price change of an Underlying within a freely definable time period.
The Condition is suitable for opening trades only after certain market movements or automatically closing running trades when certain movements occur.
The evaluation can be done flexibly in points or percentage and compared to a threshold value using operators such as greater than or less than.