Running Zen & Curvature Credit Spread Overnight together — how are same-strike opposite positions handled?

[tilak.chauhan]

Hi @Krishna

Please find answers to your questions below:

1. We have discussed deploying multiple Algos on the same broker account and the handling of conflicting orders in one of our earlier community posts. Please refer to the detailed explanation here:

Multiple strategy deployment and same-strike position handling

Hi @niranjan_navada You can deploy multiple Algos on the same broker account; there are no restrictions on the number of Algos you can deploy simultaneously. However, if two Algos generate opposite positions on the same instrument, the broker may square off the position that was opened first instead of maintaining both positions separately (this is a general practice). To prevent such conflicts, Stratzy has a built-in safeguard. If one Algo already holds a position in an instrument and another…

2. If a conflict is detected for a multi-leg strategy such as a Credit Spread, the entire trade is skipped. The platform does not execute only one leg while skipping the other, as this helps ensure that the strategy does not end up with an unintended naked or unhedged position.
3. Currently, no separate notification is sent when a trade is skipped. However, you can verify the reason by checking the order logs on the Stratzy application, where the skipped trade and the relevant details will be available.
4. You can safely deploy multiple overnight strategies on the same broker account, as the platform automatically performs conflict checks and skips conflicting trades whenever required.
5. The probability of overlapping strike selection between the two Credit Spread strategies is expected to be very low, estimated to be well below 0.01%. However, this can vary depending on prevailing market conditions.

I hope this helps clarify your query.