Re-Entry on SL or Tgt

Re-Entry triggered by SL or Target

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This feature enables you to re-enter in a new position after SL or Target hit.
You can use this feature on stop-loss or target or both.

The max limit to do re-entries is 20 for individual leg targets or stop-loss.
You can enable the “Re-entry on SL” feature as shown in the image below.

You can enable “Re-entry on Target“ feature as shown in the image below :

AlgoTest provides you with many different options for re-entry. You can use them by selecting from the dropdown menu under target as shown in the image below :

RE-ASAP (Immediate Re-Entry)

This option enables you to re-enter immediately after your stop-loss or target hit in a strike available at that time.

For example let's assume you have selected an ATM strike in your strategy for entry. After the SL/Target hits it will select a new ATM strike available at that time for entry.
You can select a maximum of 20 re-entries for SL and Target each on individual legs.

Example : Let's assume you created a strategy

Underlying :- Nifty
Entry :- 09:20
Strike :- ATM CE
Positon :- Buy
SL :- 30 Points
Re-ASAP = 1 (It means it will take max 1 entry on SL hit, you can enter max 20)

Assume at 9:20 spot is at 18502 so ATM strike is 18500 and premium is 200
Your SL is at = 200 - 30 = 170 and at 09:45 it hits
At 09:45 spot 18460 so ATM is 18450

Now according to our RE-ASAP condition it will look for ATM strikes available at 09:45 and take entry immediately in a new ATM CE strike available at 09:45. So this time strike it will select for re-entry is 18450.

RE-ASAP ( Immediate Re-Entry Reverse)

This option enables you to re-enter immediately in reverse position after your stop-loss or target hit in a new strike available at the time.

For example let's assume you have selected an ATM CE strike with Buy position in the strategy for entry. After SL/Target hits it will select a new ATM strike available at that time and enter in the CE Sell position. You can select a maximum of 20 re-entries for SL and Target each on individual legs.

Example :- Let's assume you created a strategy
Underlying :- Nifty
Entry :- 09:20
Strike :- ATM CE
Positon :- Buy
SL :- 30 Points
Re-ASAP Reverse = 1 (It means it will take max 1 entry on SL hit, you can enter max 20)

Assume at 9:20 spot is at 18502 so ATM strike is 18500 and 18500 CE premium is 200
Your SL is at = 200 - 30 = 170 and at 09:45 it hits
At 09:45 spot 18460 so ATM strike is 18450

Now according to our RE-ASAP Reverse condition it will look for ATM strikes available at 09:45(when our SL/Target hit) and take entry immediately in a new ATM CE strike available at 09:45 with reverse position. So this time strike it will select for re-entry is 18450 and enter in CE Sell position(Reversing CE buy to CE sell).

RE-COST (Re-Entry At Cost)

This option enables you to re-enter in the original leg at initial entry price.

For example you have selected ATM CE strike with Buy position in strategy. Now if your SL/Target hits, it will select the same strike for re-entry and wait for the price to come on the initial entry price. If it comes, it will take an entry.

Example :- Assume you created a strategy
Underlying :- Nifty
Entry :- 09:20
Strike :- ATM CE
Positon :- Buy
SL :- 30 Points
Re-Cost = 1 (It means it will take max 1 entry on SL hit, you can enter max 20)

Assume at 9:20 spot is at 18502 so ATM strike is 18500 and 18500 CE premium is 200
Your SL is at = 200 - 30 = 170 and at 09:45 it hits
Now it will select the same 18500 CE strike for re-entry and will wait if the price comes back to 200. If it comes at 200, it will take an entry at 200.

RE-COST (Re-Entry At Cost Reverse)

This option enables you to re-enter in the original leg at initial entry price in reverse position. For example you have selected ATM CE strike with Buy position in strategy. Now if your SL/Target hit, it will select the same strike in Sell position for re-entry and wait for the price to come on initial entry price. If it comes, it will take an entry in ATM CE Sell position at initial entry price.

Example :- Assume you created a strategy
Underlying :- Nifty
Entry :- 09:20
Strike :- ATM CE
Positon :- Buy
SL :- 30 Points
Re-Cost Reverse = 1 (It means it will take max 1 entry on SL hit, you can enter max 20)

Assume at 9:20 spot is at 18502 so ATM strike is 18500 and 18500 CE premium is 200
Your SL is at = 200 - 30 = 170 and at 09:45 it hits
Now it will select the same 18500 CE strike for re-entry and will wait if the price comes back to 200. If it comes at 200, it will take entry at 200 and reverse the CE Buy Position to CE Sell.

So it will take re entry in 18500 CE Sell position at 200.

RE-MOMENTUM (Re-Entry On Momentum)

This option enables you to re-enter when the momentum condition meets after SL/Target hit. This will work only if you have enabled Simple Momentum feature in strategy.For example you have selected ATM CE strike with Buy position and X points in momentum in strategy. Now if your SL/Target hits, it will select a new ATM strike and wait for X points momentum if it holds true or not. If it doesn't meet it will not take entry.

Example :- Assume you created a strategy
Underlying :- Nifty
Entry :- 09:20
Strike :- ATM CE
Positon :- Buy
Simple Momentum :- 20 (Need to be enabled for momentum re-entry)
SL :- 30 Points
Re-Momentum = 1 (It means it will take max 1 entry on SL hit, you can enter max 20)

Assume at 9:20(entry time) spot is at 18502 so ATM strike is 18500 and 18500 CE premium is 180 and after some time at 09:25 it reached 200 so it took entry at 200.
Your SL is at = 200 - 30 = 170 and at 09:45 it hits.
Now at 09:45 it will look for an ATM strike for re-entry. Say at 09:45 spot is at 18472 so ATM is 18450 and 18450 ATM CE premium is 180.
Now according to our momentum condition it will wait if 18450 CE premium moves 20 point up i.e. 180+20 = 200
If the price200 doesn’t come then it will not take any entry.

So it will take re entry in 18450 CE Buy position at 200.

RE-MOMENTUM (Re-Entry Reverse On Momentum)

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This option enables you to re-enter when the momentum condition meets after SL/Target hit in a reverse position.

This will work only if you have enabled the Simple Momentum feature in strategy.

For example let's assume you have selected an ATM CE strike with buy position and X points in momentum in the strategy. Now if your SL/Target hits, it will select a new ATM strike and wait for X points momentum to hold true. If it doesn't meet this condition then it will not take entry.

Example :- Assume you created a strategy
Underlying :- Nifty
Entry :- 09:20
Strike :- ATM CE
Positon :- Buy
Simple Momentum :- 20 (Need to be enabled for momentum re-entry)
SL :- 30 Points
Re-Momentum-Reverse = 1 (It means it will take max 1 entry on SL hit, you can enter max 20)

_ Let's assume that at 9:20 (entry time) the spot is at 18502 so the ATM strike is 18500 and 18500 CE premium is 180. After some time at 09:25 it reached 200 so it took entry at 200.
Your SL is at = 200 - 30 = 170 and at 09:45 it hits.
Now at 09:45 it will look for an ATM strike for re-entry. Say at 09:45 the spot is at 18472 so ATM is 18450 and 18450 ATM CE premium is 180.
Now according to our momentum condition it will wait if 18450 CE premium moves 20 point up i.e. 180+20 = 200, but it will take entry in reverse position i.e. 18450 CE sell instead of 18450 CE Buy
If 200 price don’t come it will not take any entry._

So it will take re-entry in the 18450 CE Sell position at 200.

LAZY LEG

Introducing the Lazy Leg Feature in AlgoTest

Our latest update introduces the "Lazy Leg" feature, designed to enhance the flexibility and efficacy of trade management within our platform. This feature allows users to define conditions for re-entering trades, specifically Target or Stop-Loss strategies, by setting conditions directly related to individual legs of a trade.

What is a Lazy Leg?

A lazy leg refers to a part of your strategy's leg that you can set to activate under certain defined conditions without manual intervention. It extends the capability of our platform, allowing for more sophisticated management of entry and exit strategies.

How to Set Up a Lazy Leg

• Configuration: Users can directly select "Lazy Leg" to add a leg under stop-loss or target profit conditions.
• Usage in Trading Strategy: A lazy leg can be associated with both Re-Entry by Target and Re-Entry by Stop Loss. The settings for each can be the same or varied depending on the strategy’s requirements.
• Execution: When a lazy leg condition is met, the system treats it as a separate entity but follows the defined parameters (of previous legs) to execute trades, ensuring that the strategy's objectives are maintained.

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This feature allows you to execute specific legs of your trading strategy when your initial target or stop loss or target is reached. 

For example, if your strategy involves selling an ATM call with a 20-point stop loss, you can use the Lazy Leg feature to execute an OTM put sell leg with a 10-point stop loss and 20-point target if the initial stop loss is hit. This feature gives you more flexibility and control in executing your trades.

You can create a "Lazy Leg" by selecting the option in the Re-Entry feature and inputting your desired parameters for the leg before clicking on "Create and Select".

Example :- Let's assume you created a strategy

Underlying :- Nifty
Entry :- 09:20
Strike :- ATM CE
Positon :- Buy
SL :- 30 Points

Re-Entry on SL (Lazy Leg) :- OTM2 CE Sell, SL 20%, Target 40%

Assume that at 9:20 the spot is at 18502 so ATM strike is 18500 and 18500 CE premium is 200

Your SL is at = 200 - 30 = 170 and at 09:45 it is hit and triggered.  

Now assume that at 09:45 the spot is at 18465 so OTM2 for CE is 18550 CE. 

So as per our Lazy Leg condition it will execute the 18550 CE with 20% Stop-Loss and 40% Target at 09:45.

LAZY LEG on LAZY LEG

This feature enables the automatic execution of another Lazy Leg when the stop-loss (SL) or target of a Lazy Leg is activated.

For instance, if I have a strategy that executes a Call Option (CE) At-the-money (ATM) Leg at 09:20 with a 50% stop-loss (SL), I can set up a Lazy Leg #1 with the same parameters and a 40% SL when the SL of our initial leg is hit. Additionally, I can add another Lazy Leg #2 with the same parameters and a 30% SL and connect it to Lazy Leg #1. So, if the stop-loss of the initial leg is hit, it will execute Lazy Leg #1, and when the stop-loss of Lazy Leg #1 is hit, it will execute another leg, Lazy Leg #2.

It is an advanced feature that enables users to create multiple combinations and complex trading strategies. You can add upto 10 lazy legs in 1 strategy.

How Lazy Leg on Lazy Leg feature works

In the image below, you can see three legs, each with a different stop loss. These legs are referred to as Leg #1, Leg Lazy1, and Leg Lazy2. When the stop loss of Leg #1 is hit, it will trigger Lazy Leg 1 (Lazy1). Likewise, when the stop loss of Lazy1 is hit, it will trigger Lazy Leg 2 (Lazy2). Feel free to try out different combinations as well.