How to simultaneously cover both legs of a strangle

Algos, strategies, code
1

Hello All,
After i enter a short strangle, i want to exit both legs when combined premium increases or decreases by X points or percentage.

I can see that sentinel has some basic framework but it doesnt completely solve ny problem. It can alert and wait for user action to trigger the basket order. Also i havent explored whether Sentinel can give alert based on combined premium value.

Cuurently i use SL-M on each leg but its very difficult to predict the SL and also it exits only one leg while the other continues to trade. So if market keeps moving in one direction then SL-M may help. But in situations where it spikes hits my SL-M and reverses then i will be in a soup.

@nithin @siva-reddy any of your current products can help me solve my problem which i explained above.

@others, Any suggesions and discussions to solve my problem are most welcome.

2

We have GTC type of orders coming up soon, but for equity. For FO, will speak to our team and let you know.

1 Like
3

appreciate your reply :+1:

4

It is covered using sentinel, it will generate alerts based on combined value, sentinel can do lot more, above case is explained with gif in the shared link, can check here for more.

5

Hi Siva,
Thanks for the reply.

When a condition is met, can Sentinel auto execute the baskets ?

My understanding is it generates an alert & manually we need to execute the basket.

Pls clarify.

6

Auto execution is not allowed, manual intervention is required. But one can trade multiple orders with couple of clicks.

7

I understand. But it makes retail traders to keep glued to their trading desk OR keep watching the alert message from Sentinel.

Even if we do that and by the time we go and take an action the entire price action would have passed.

Auto execution is THE solution.

SL is also a form of auto execution. When SL is allowed, why auto execution of baskets is not allowed ?
Is it limitation on your platform ? or the regulator ?

if its regulator, Can you pls share the links where in I can go through & study on why this limitation was set…

8

This case falls under algo, regulators don’t allow algos for retailers, good or bad this is the current scenario in India, it has nothing to do with any broker.

9

Will i be able to solve this if i can write my own app using zerodha apis?

I will need following api support :

  1. read live prices of a given strike price every second.
  2. place buy / sell order

does it also come under algo trade and it is not allowed by regulators?

10

please elaborate on this.

11

Automatic placing of order is considered as algo by regulators, these type of orders are not allowed for retailers without prior approval.