Master automated exit management with OCO

What is OCO?

Instead of manually watching each trade, the OCO engine:

Monitors positions with <50ms event-driven real-time updates (10-40x faster than polling)
Checks current P&L against your exit targets instantly
Executes partial or full closes based on your rules
Adjusts stops to breakeven after hitting first TP
Handles trailing stops and time-based exits

How It Works

The OCO engine continuously monitors:

Real-time position P&L
Current price vs. entry price
Take profit levels
Stop loss levels
Trailing stop distances
Time-based exit conditions

When a condition is met, it:

Immediately places the exit order
Updates remaining position size
Adjusts remaining exit levels if needed
Logs the action for your records
Continues monitoring until position is fully closed

Example Configuration

When position reaches +30% profit, sell half

At +60%, sell half of what's left

Close everything if down 30%

Once TP1 hits, move stop to breakeven (0%)

Result

You lock in profits at multiple levels, protect against losses, and let winners run with no downside risk after TP1.

Take Profit Levels

You can configure up to 3 take profit levels:

TP1 - First profit target (typically 25-40%)
TP2 - Second profit target (typically 50-75%)
TP3 - Final profit target (typically 100-150%)
Each TP closes a percentage of your position
Percentages are based on remaining contracts

Stop Loss Configuration

Set as percentage below entry price
Typical range: -20% to -40% for options
Closes entire position when hit
Can be adjusted to breakeven after TP1
Can enable trailing stop after TPs

Breakeven Logic

Move to Breakeven automatically adjusts your stop loss:

Triggers after first TP is hit
Moves stop loss to entry price (0% loss)
Eliminates risk on remaining position
Guarantees break-even or better on the trade
Can add small buffer (e.g., +2%) to lock in guaranteed profit

Trailing Stops

Enable trailing stops to lock in gains as price moves in your favor:

Activates after all TPs are filled
Stop loss follows price up at set distance
If price drops by trail percentage, position closes
Example: 10% trail at $5.00 = stop at $4.50
Price rises to $6.00? Stop moves to $5.40

Time-Based Exits

Optional: Close position after set time
Useful for day trading strategies
Can set specific close time (e.g., 3:45 PM)
Or set duration after entry (e.g., 30 minutes)
Overrides other exit conditions when triggered

Best Practices

Always set a stop loss - never trade without one
Use asymmetric risk/reward (risk $1 to make $2+)
Scale out gradually - don't close entire position at once
Enable breakeven after first TP for risk-free trades
Test your exit strategy in paper mode first
Review your win rate and profit factor regularly

Popular OCO Strategy

Many successful traders use: TP1 at +30% (close 50%), TP2 at +60% (close 50%), Stop at -25%, Move to breakeven after TP1. This captures quick profits while letting runners go.