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Entry and Management Rules Overview
When to enter, exit, and adjust positions
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:
- Conditions - The criteria that must be met (e.g., "VIX > 20" or "Time = 9:31 AM")
- Action - What happens when conditions are satisfied (e.g., "Open Position" or "Close Position")
Rule Formula: IF (ALL conditions are true) THEN (execute action)
⚠️ Important:
All conditions in a rule must be true for the action to trigger.
💡 Example:
Rule Example:
- Condition: Time equals 9:31 AM AND VIX > 20
- Action: Open Iron Condor Position
- Result: Position opens automatically when both conditions are true
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
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
💡 Example:
Custom expressions can handle complex logic like "(VIX > 30 AND Time > 14:00) OR Position Loss > $500"
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
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
💡 Example:
Rule Examples:
- Simple: "Time = 9:31 AND VIX > 20" → All conditions must be true
- Complex: "(Time = 9:31 OR Time = 10:31) AND VIX > 20" → Custom expression with OR logic
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.
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Last updated: 9/9/2025