Kotak securities, at all times, bears no liability towards you for any reason whatsoever with respect to using the Strategy Bot feature; including but not limited to, non-execution of any order using the Strategy Bot feature / either leg of the order, any opportunity loss for non-execution of such orders/trades, any cancellation or non-placement of any orders, and any such other claims which may arise from you with respect to using the Strategy Bot feature.
Strategy Bot is an automated multi-leg trading tool that simplifies the creation and execution of options strategies. It allows traders to add multiple option contracts and set specific entry and exit conditions based on price or time for each strategy.
This tool uses the combined Last Traded Price (LTP) of all the contracts in a strategy, known as Strategy LTP, to trigger trades. Once the predefined conditions are met, the orders are automatically sent to the exchange, reducing the need for manual monitoring and quick decision-making.
Let’s break it down with a couple of examples:
Example 1: Buy Orders
Suppose you add:
The combined Strategy LTP becomes -150 (100+50 = 150. Since it's a combination of buying both calls and puts)
You set the following conditions:
Once the Strategy LTP reaches -100, the orders are sent to the exchange, and the strategy enters the market. After entry, if the Strategy LTP drops by 50 points (Strategy LTP = -50) or rises by 75 points (Strategy LTP = -175), the bot will automatically execute either a stop-loss or a book-profit order.
Example 2: Sell Orders
In a similar way, for sell orders:
You set the below conditions:
Once the Strategy LTP reaches 200, the orders are sent to the exchange, and the strategy enters the market. After entry, if the Strategy LTP drops by 100 points (Strategy LTP = 100) or rises by 50 points (Strategy LTP = 250), the bot will automatically execute either a stop-loss or a book-profit order.
1. Automated Entry and Exit Execution Strategy Bot allows traders to automate the process of entering and exiting strategies by setting predefined conditions. This helps traders avoid missing key moments in the market and reduces the need for manual intervention, freeing them up to focus on other opportunities.
2. Risk Management With Strategy Bot, traders can easily manage risk by setting book profit and stop-loss conditions based on the points from the average entry or the profit and loss levels they can tolerate. This ensures that traders don't miss out on profits or incur unexpected losses. Additionally, traders can set a global exit for all open strategies, allowing them to exit when their overall Strategy Bot profit and loss (PnL) meets the desired thresholds.
3. Strategy LTP-Based Execution The combined Strategy LTP drives the execution, which simplifies strategy management. Instead of setting entry or exit prices for each individual leg of the options contracts, traders can rely on the Strategy LTP to trigger the execution of orders. This makes it easier to manage multiple-leg strategies.
1. Accessing Strategy Bot:
2. Add legs from option chain
3. Name the Strategy
4. Set Entry parameters
5. Set Exit parameters:
6. Start or Save the Strategy:
7. Set global exit:
Risk Disclosure:
Strategy Bot order does not assure execution of an order and includes/involves all risks with respect to Trading, and risks with respect to trading in the Capital Markets segments will extend to trading using the Strategy Bot orders as well.