Per-Leg Actions
In complex multi-leg strategies such as Iron Condors, Straddles, or custom Futures spreads, managing the strategy as a single unit isn't always enough. Per-Leg Action is a professional-grade feature that grants you surgical control over individual components of your trade.
Instead of applying logic to the entire position, you can define specific Conditions and Actions for each contract independently.
1. What is Per-Leg Action?
Per-Leg Action allows you to isolate and interact with individual legs within a broader strategy. This provides the precision required for advanced risk management and dynamic trade execution.
Where to Use Per-Leg Logic:
- In Conditions: Monitor the MTM, Delta, Theta, or Price of a single leg to trigger the next phase of your strategy.
- In Actions: Specify exactly which leg to exit, modify, or add without affecting the rest of your portfolio.
2. Key Per-Leg Operations
A. Add New Position (Add Leg)
This action allows you to enter an additional position in Futures, Options, or Cash segments incrementally. You can "evolve" your strategy as the market moves.
Common Use Cases:
- Dynamic Hedging: Add a protective leg only when the main position hits a specific price or risk threshold.
- Pyramiding: Build into a winning position by adding more lots or different strikes based on momentum.
- Strategy Conversion: Start with a naked position and add a leg later to convert it into a spread (e.g., turning a naked Put into a Bull Put Spread).
Logic Example:
Entry: RSI < 30 on NIFTY → Buy 1 lot NIFTY Call (ATM).
Add Leg Trigger: If price rises 2% → Add Leg (Buy 1 lot NIFTY 1-OTM Call).
B. Square Off Leg
This allows you to close or exit a specific leg of a multi-leg position independently while keeping the rest of the strategy active.
Common Use Cases:
- Leg-Specific Stop Losses: Exit one side of a Straddle while keeping the other open for continued decay.
- Partial Exits: Close out losing legs while holding winners to maximize profit.
- Dynamic Risk Management: Exit high-delta legs that have become too risky during high volatility.
Logic Example:
Entry: ATM Straddle (Leg 1: CE, Leg 2: PE).
Trigger: CE Stop Loss hit at 35%.
Action: Square Off Leg 1 → Keep Leg 2 running for Put premium decay.
3. Advanced Configuration Scenarios
| Feature | Condition / Action Example |
|---|---|
| MTM Thresholds | If Leg A MTM > 10% of total premium → Trigger secondary entry. |
| Greeks Monitoring | If Leg B Delta > 0.5 → Add a hedging leg. |
| Status-Based Logic | If Leg 1 is "Squared Off" → Exit the entire strategy (The "Anchor" Logic). |
| Time-Based Scaling | If Time > 14:00 and Leg A is profitable → Square Off Leg A only. |
4. Comparison: Strategy-Level vs. Per-Leg Execution
| Feature | Strategy-Level Action | Per-Leg Action |
|---|---|---|
| Scope | Affects all legs simultaneously. | Targets one specific instrument. |
| Precision | High-level (e.g., "Exit All"). | Surgical (e.g., "Exit Leg 2"). |
| Complexity | Simple "On/Off" logic. | Advanced, multi-step workflows. |
| Best For | Hard Stop Losses & Time-Exits. | Adjustments, Hedging, & Rolling. |
Why Use Per-Leg Features?
- Reduced Slippage: By exiting only the legs that hit their targets, you stay in winning trades longer.
- Sophisticated Backtesting: Model real-world scenarios where one leg of a spread behaves differently than the others.
- Risk Mitigation: Create "Kill Switches" that are leg-specific, preventing a single volatile contract from wiping out strategy gains.