Many strategies are taking same expiry trades. How can we avoid taking same expiry trade by other strategy?

[bhavin]

I dont understand why many trades running with same expiry, No doubt timing is different, but same directional. How can we avoid taking same expiry trade by other strategy or is there any way to stop taking new trade if same expiry trade is already running by other strategy? so that loss can be minimized if all trades are running in loss. Although will miss big profit also if profitable trade

[tilak.chauhan]

Hi @bhavin

I would like to clarify that it is completely normal for multiple Algos to trade the same instrument and the same expiry. While the instrument and expiry may be the same, the reason for entering the trade can be entirely different for each Algo. We have addressed this in one of our earlier posts. You can refer to it for better clarification:

More strategies=more trades=high position size=high volatility

Hi @nijinwilson @Arun_Ramachandran @Avinash I would like to clarify that it is completely normal for multiple Algos to trade the same instrument. While the instrument may be the same, the reason for entering the trade is entirely different for each Algo. Let me explain with an example. Most of our Options Algos select contracts based on their moneyness - that is, whether the option is ITM (In-the-Money), ATM (At-the-Money), or OTM (Out-of-the-Money) - along with their own predefined trading l…

That said, I would also like to clarify that there is no feature to automatically stop a new trade from one Algo based on an existing position taken by another Algo. Such a mechanism could also result in missing trades when the algos are independently identifying valid opportunities.

I hope this provides clarity.