Risk Control

[Philb]

I am trying to figure out to best way to limit my risk on a 0DTE iron condor on RUT. I am placing a 15 wide condor and an trying to limit it to a $5 to $6 dollar loss. Yesterday I put in a stop loss order in @ 4.70 that got triggered and then filled @ 2.68. So, that's not going to work. I am thinking that I could put a limit order in that would be triggered when RUT moves a couple of strikes beyond my shorts. Is that the best way or is there a better solution.

 

[Philb]

I am using TOS desktop.

 

[status1]

I am not sure you can do that on a conditional order From what I remember you can trigger it on the RUT price or the BID/ASK but not the price of the condor otherwise you could put in an order to close it like you did with a limit price but you can't guarantee that it will be filled at $5 when the market is moving fast

You would also want to place an order to take profit at some point otherwise you could easily get filled just on losses

There is a video here on tips and tricks that shows how to place a conditional order