Using the Stop Plug For Iron condors

#1

Using the Stop Plug For Iron condors :

#2

Ok I watched this 10 times and Im very confused, I would like to know how do I actually set up Stop loss on my orders so I dont lose the entire capital which is at risk, in this video Darrell is showing how to set up take profit right?

#3

This is an example from a demo trade I placed yesterday on the Wall St 30. Since it has a tick size of 1 it’s easier to work through. I didn’t include any fees in the calculations. Hopefully it helps.

#4

Ok thanks now I know how it works but the question is can you set up tp and sl for the same spread?

#5

If you are looking to leave the trade completely unmonitored by yourself, I don’t think you can. You could place a take profit order and a stop trigger order for the loss, but one won’t close out the other. This could leave you vulnerable to being triggered into a position than you didn’t intend. A two sided trade just multiplies these possibilities.

If you want to close out your position early for profit or a smaller loss, I would do so manually and then close any stop triggers that are related to that trade.

#6

I made an error in my example. There is so much premium in the indices spreads right now that a 1:1 stop loss is often outside of the ceiling or floor of the spread, as it was in this case. I do hate math errors. Sorry.

#7

I have found that stop losses on iron condors are generally not necessary. It’s rare for them the completely run in one direction. It happens, but rare at least in my experience. If you do use the stop trigger. Remember to set it to a 150% of your potential profit for some breathing room. I wouldn’t even bother with take profit orders personally. Letting them expire maximizes premium collection and often provides a more profitable condor.