Platform managed contingent orders (OTO, OCO, OTOCO)
Brian Chia
Problem
OO currently supports OTO orders for resting stops. This allows OO to close a wing with a market order after the short gets stopped out. However, if relying on OO managed stops, there is no way to initiate an OTO type sequence.
Furthermore, there may be a desire to exit the other leg(s) by some means other than just a market sell-to-close. For example, the trader may want to set a profit target or use a trailing stop so that the long wing is held longer in an attempt to capture additional premium from momentum of a big move.
Proposed Solution
- Introduce contingent order options for all platform managed exits, not just broker resting stops
- The UI can be similar to the existing OTO setting — if the user enables this, it allows selection of other Contingent leg groups to close. When the initiating leg group is closed or stopped out, this triggers the exit sequence and any specified rules for the specified contingent leg group(s), essentially serving as a platform managed OTO.
- For other leg groups, adding a "Contingent Exit Only" toggle could allow a trader to keep profit target, stop loss, or early rules in place, but these would remain dormant until triggered by the initiating leg group. The existing SL / PT settings serve as an OCO, so we would now essentially have platform managed OTOCO.
- This would also require a setting for immediate Market closing order, either as an option when choosing the Contingent leg(s) (e.g. for each contingent leg choose between Market vs Platform Managed Exit Condition) OR designate an immediate Market closing order as part of the Exit Progression settings. The current resting stop OTO exit uses a Market closing order, but the standard exit progression cannot default to a Market closing order. See: https://optionomega.canny.io/feature-requests/p/market-order-sent-immediately-upon-exit
Brian Chia
Merged in a post:
Use a bot managed selling of the long legs in the case of a stoploss instead of an OCO order.
E. John
This will ensure I would be able to trade credit style trades with Tasty cause there is a limit on OCO orders.
M
MrT
This would also be an amazing opportunity to not only eliminate broker limitations, but give more options on what to do with the longs like exit delay, trailing stop, etc.
Christopher
On Tradier I also cannot use OTO (I'm guessing you mean OTO) orders anymore as it completely messes with their DT margin calculation and cancels stop orders. Bot managed would solve that. However even better would be a reuse of those longs as a general setting for other strategies.
z
zainaf24@gmail.com
A way to have platform managed vs broker managed partial legs has a lot of benefits in the mix and it's critical for real volume trading