Creating a Bot

Creating a bot is simple and powerful. Learn how to build and customize a new bot in Option Alpha.

To create a new bot, select “Create Bot" in the bot dashboard.

Customize the bot with a name and icon, select a brokerage or paper trading account, give the bot an allocation, and input position limits in the bot's global settings.

Global settings can be edited anytime but must be entered when a bot is created.

Name

Give your bot a name. Naming the bot makes it easy to remember the bot’s purpose, inputs, and strategy. As you add more bots to your portfolio, it is important for the name to be easily identifiable to help keep you organized.

Icon

You can customize your bot with a colored icon to help identify your strategies and organize your portfolio.

Account

Link the bot to a connected brokerage account or paper trading account. You cannot change the bot's account after you create the bot (you'll need to clone the bot to change accounts).

You do not need to have a connected brokerage account to use the Option Alpha paper trading account.

Allocation

Allocation is the total capital available for the bot to open positions. The bot will not enter new positions if it exceeds the allocation limit. Bot allocation limits are calculated at position entry.

Allocation is different than risk or position limits. Allocation is the total purchasing power the bot has to open new positions. Risk defines the maximum amount that can be lost on a single position and can be set as a dollar or percentage amount in the automation editor.

Market conditions at position closing may cause increased capital allocations beyond the calculated maximum risk at position entry. If the market is illiquid or bid-ask spreads are wide, bots have the potential to risk more capital when the position is closed than was allocated at entry.

For example, if there is a wide bid-ask spread for a credit spread position, the ask price to close the spread may exceed the spread’s width. As always, you have the ability to override positions, or SmartPricing settings, exit criteria, and orders at any time.

If you manually override a position, the Option Alpha platform no longer communicates with the position The position will not count against position limits or capital allocation limits. You may need to re-consider your bot’s capital allocation limit if you manually override positions.

Position Limits - Daily

You must also set daily and total position limits when creating a bot. Bot scanners and other entry automations automatically turn off when a position limit is reached.

The daily limit is the maximum number of positions the bot can open in one day.

For example, a bot with a daily limit of three positions will stop scanning for new positions if three positions have been opened in one trading day.

Position limits are for opening positions only; you can close as many positions as you want.

Position Limits - Total

The total limit is the maximum number of open positions available for a bot. The bot will not open new positions if the total position limit is reached.

For example, a bot with a total limit of six positions will stop scanning for new positions if there are six positions open inside the bot.

Create Bot

Select “Create Bot” after you enter the global settings. You may edit the bot settings later if you want to make changes.

Your new bot is added to your portfolio. The Positions tab, Automations tab, and Bot Log are blank and ready for you to add automations. New bots are automatically "Off" by default when created. To turn on the bot, simply toggle the switch to "On" in the top right corner of the dashboard.

Deleting a bot

To delete a bot, click on the three dots on the top right of the bot's dashboard and select 'Delete.' Deleting a bot will remove it from your account and all position stats will no longer be accessible. You can always save your bot as a template. There is no limit to the number of templates you can have.

Using the Bot Wizard

Meet the new bot wizard, our latest, groundbreaking technology to help you create bots. The bot wizard is the quickest and easiest way to build a bot and start your autotrading journey.

The bot wizard builds an entire bot automatically for you, using your entry and exit criteria for a particular strategy.

To build a new bot with the bot wizard, click the button at the top of your Bots homepage and select Bot Wizard.

Like creating any new bot, you’ll name the bot, choose an icon, select a paper trading or live account you’ve connected from our list of integrated brokers, and give the bot an allocation limit.

The bot wizard asks you to input position details such as trade frequency, ticker symbol, strategy type, days until expiration, strike prices, and contract/risk amount.

You can use any of the prefilled recipes we offer inside the platform, and this is a great way to introduce new traders to our easy-to-use, natural language logic. The wizard gives you a lot of flexibility to target specific position types.

Plus, you can always modify any of your bot’s settings after it is created.

Next, you’ll set up the strategy’s entry criteria using our extensive list of decision recipes.

This is fun because you can use as many decision recipes as you want, and once you’re ready, the bot is created automatically for you inside your account.

For example, this bot will only open new positions in SPY if the price is above 500,The VIX rank is between 0-25, and the SPY RSI 14 Indicator is below 30.

You simply tell the bot wizard what you want the bot to filter before it opens new positions. You can make your automations as simple or complex as you like.

You also have complete control of the exit criteria to manage and close positions exactly how you want.

For example, this bot will automatically exit a position if the short put spread has a 50% profit or the position expires in less than two days.

Once you’ve completed filling out the wizard and your new strategy is ready, simply click the button to create your bot. Your bot is automatically created on the back end using all the criteria and settings you put into the simple bot wizard. Yep, it’s that easy!

You can view your bot immediately and you see your automations. The entry scanner automation automates all criteria that would open a new position.

Remember, you can always modify and edit any of the automation’s fields inside the automation editor. Let’s say you want to change the IV rank to be above 75. Well, you simply make that change and then hit save, and you’re good to go with your new entry criteria. You can save all your changes, and the new entry criteria are reflected in the automation editor.

We created the bot wizard to streamline the process of creating your first bot and automating your favorite strategies.

Remember, you create the bot with your ideas and criteria; the bot wizard makes it simple with easy-to-use natural language recipes. You can always add, remove, or modify any settings before and after turning on the bot. You are in control!