Entry and Management Rules Overview

Rules are the core building blocks of your trading strategy in GreeksLab. A rule combines conditions (when something should happen) with an action (what should happen) to create automated trading logic.

Understanding Rules

What is a Rule?

A rule consists of two main components:

1. Conditions - The criteria that must be met (e.g., "VIX > 20" or "Time = 9:31 AM")
2. Action - What happens when conditions are satisfied (e.g., "Open Position" or "Close Position")

Rule Formula: IF (ALL conditions are true) THEN (execute action)

Types of Rules

GreeksLab supports two main types of rules:

Entry Rules

• Purpose: Control when new positions are opened
• Action: Opens a position based on your position template
• Timing: Evaluated continuously during market hours
• Example: "Open position at 9:31 AM when VIX > 20"

Management Rules

• Purpose: Control when existing positions are modified or closed
• Actions: Close position, roll a leg, or close specific legs
• Timing: Evaluated for each open position
• Example: "Close position when profit reaches $100"

Condition Types

GreeksLab offers two ways to create conditions:

Preset Conditions

• Pre-built condition templates for common scenarios
• Easy-to-use dropdown selections and input fields
• Examples: Market Time, VIX Level, Position Profit
• Best for: Beginners and standard trading setups

Learn more

Custom Expressions

• Advanced condition building using mathematical expressions
• Full access to engine data fields and complex AND/OR logic
• Best for: Advanced users with specific requirements

Learn more

Actions Overview

Actions define what happens when rule conditions are satisfied:

• Open Position: Creates new position from template
• Close Position: Exits existing position
• Close Legs: Exits specific position legs
• Roll Position: Adjusts a leg to new strike

Learn more

How Rules Work

Rule Evaluation

Rules are evaluated based on their conditions:

• All conditions must be true for the rule action to trigger
• Preset conditions use simple AND logic (all must be satisfied)
• Custom expressions can use complex AND/OR logic within a single condition
• Rules are evaluated continuously during simulated market hours

Best Practices

Entry Rules

• Start simple: Begin with basic time-based entry rules
• Add filters gradually: Layer in market condition filters
• Test thoroughly: Validate rule logic works as expected
• Avoid over-fitting: Don't make entry conditions too restrictive

Management Rules

• Always include stop loss: Protect against large losses
• Set profit targets: Don't let winners turn into losers
• Use time-based exits: Avoid holding positions indefinitely
• Layer multiple rule types: Combine profit, loss, and time-based management

Next Steps

Ready to dive deeper? Explore these related topics:

• Conditions - Detailed guide to available condition types
• Actions - Complete reference for position actions and their parameters

Or return to the Strategy Building Guide to see how rules fit into the complete strategy framework.