Enforcements & Safeguards
Rules of the platform and a description of errors.

Error Types

Soft Errors

Soft Errors or Warnings include Not Enough Capital error, Pricing Anomaly, Position Limit error, and No Option Available error. These error types do not count toward the Excessive Error Failsafe limit prior to a bot auto-shutdown.
These will be found in your Bot Log under Warnings:

Fatal Errors

Fatal Errors include Leg Enforcements, Daily Underlying Symbol Limit, and Broker Rejection errors for Overlapping Strikes, Price Exceeds Strike-Difference, and Options Approval Level.
These will be found in your bot log under Errors:

Platform Warnings

Pricing Anomaly Detected

The Pricing Anomaly warning will appear when a trade opportunity experiences pricing that is outside of what is expected. This is typically found in cases where option legs are lacking bids or where the bid/ask spread for one leg is inverted with the other. For example, the strike closer to the money has a mark price that is less than that of the leg set further out of the money. The user should reference the options chain on their broker platform to investigate further and check for zero-bid and inverted bid/ask spreads.
Be aware that the bots reference pricing at the instant the order is created so there can be situations where pricing for a particular leg could be fluctuating faster than what is displayed on the broker's platform.

Not Enough Available Capital

In cases where the bot has insufficient available capital and a trade is attempted, the soft error of Not Enough Available Capital will be thrown. By utilizing the decision to check for the bot's Available Capital before an Open Position action, you can avoid this warning. For more info visit the Help Center

Total Position Limit

This error is thrown when the user has reached the maximum limit for Total Positions opened. For more info visit the Help Center.

Daily Position Limit

As mentioned on the Automations page, when opening a position through a monitor automation or in a proceeding scanner, if that position violates a Daily Position limit setting, an error is thrown to prevent additional positions from being opened.

No Expiration Available

When the bot attempts to open a position and the underlying does not have a contract at the specified expiration, the No Option Available warning will be thrown.

Platform Errors

Missing or Invalid Input

A custom input error is generated when a custom input does not have a properly assigned value. This can occur for a scanner, monitor, or event and can happen with any type of custom input, regardless of property type.

Strike Enforcements

When specifying a type of position to open, the structure of that position will be enforced in accordance with the definition of that position. The auto trading platform will require option legs of a trade to have a structure that reflects the correct structure of that trade type.

Leg Enforcement for Credit and Debit Spreads

A credit spread (short call spread or short put spread), by definition, is an options trade where the sold leg is at a higher delta than the delta of the leg purchased. And vice versa for a debit spread (long call spread or long put spread) where the leg purchased is at a higher delta than the sold leg. The auto trading platform will not permit you to select a "put credit spread" and structure it as if it were a put debit spread.

Leg Enforcement for Iron Condors

An Iron Condor is a delta-neutral strategy composed of two credit spreads, one on either side of the underlying price. The width of the iron condor can vary, but the structure will be the same and enforced by the auto trading platform. An Iron Condor will always have 4 different strike prices comprising the entire position. It will not be possible to "buy" an iron condor where the purchased deltas are higher than the sold deltas. The delta sold for both the call and the put will be at a higher respective delta than the deltas of the legs that are purchased.

Leg Enforcement for Iron Butterflies

On the other hand, an Iron Butterfly is an options strategy designed to profit from decreasing implied volatility. It is made up of 3 strikes where the butterfly's body is created by selling two options, a call, and a put, of the exact same strike price. The wings are created by buying a call and a put that are a certain distance from the strikes which make up the body of the butterfly. This is key to understanding the auto trading platform's enforcement of strikes. An Iron Butterfly is unique from an Iron Condor in that the Iron Butterfly has two shorts strikes, one call, and one put, of the exact same delta. Where the Iron Condor has 4 strikes of any delta.
The Iron Butterfly trade type implies strict enforcement that the middle strikes are equal.

Strike Enforcement Logic

Strategy Type
If Condition
Enforcement
Short Put Spread
ShortPutStrike < LongPutStrike
Short put strike must be greater than long put strike
Long Put Spread
ShortPutStrike > LongPutStrike
Short put strike must be less than long put strike
Short Call Spread
ShortCallStrike > LongCallStrike
Short call strike must be less than long call strike
Long Call Spread
ShortCallStrike < LongCallStrike
Short call strike must be greater than long call strike
Iron Condor
ShortPutStrike < LongPutStrike
Or
ShortCallStrike > LongCallStrike
Short put strike must be greater than long put strike
Short call strike must be less than long call strike
Iron Butterfly
ShortPutStrike < LongPutStrike
Or
ShortCallStrike > LongCallStrike
Or
ShortPutStrike !== ShortCallStrike
Short put strike must be greater than long put strike
Short call strike must be less than long call strike
Short call strike does not match short put strike

Daily Underlying Symbol Limit

The Bot Platform will generate an error in any case where a bot is using more than 10 symbols, regardless of whether those symbols are referenced in a scanner, monitor, or event. So whether opening new positions, analyzing conditions, monitoring existing positions, or using a symbol as a custom input, the bot has a maximum allowance of 10 symbols.
Once this threshold is breached an error will generate and the automation will stop its progression and produce a notification that the bot has exceeded its symbol limit.
The Daily Symbol Limit is reset each morning following the market open and prior to the first scan time at 9:45 am Eastern Time - New York.

Excessive Errors Failsafe

There are a number of safeguards in place to improve the performance and stability of the platform. These safeguards exist on the position level as well as the global bot level.
The excessive errors safeguard is generated when a bot exceeds 10 errors in 1 day and will auto force the bot off to avoid unnecessary server load for bots that are generating excessive errors on a daily basis.
The bot will need to be manually re-enabled in order to continue operation. If the bot has open positions, after turning the bot back on, the monitor will continue to manage active positions. However, any additional attempts to open new positions will trigger the bot to shut off once again.
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Last modified 14d ago