An option contract limits loss no matter what happens to the underlying.
I am using stock prices to mimic option prices. This may be questionable but works well enough to test.
It there a way to use ApplyStopLoss() or ?? to set a fixed maximum loss to the amount risked?
Net liquidity = $10,000.00
Risk per trade 1% of NetLiq = $100.00
Maximum Loss = $100.00
I use a percent stop loss that works. It does not work when the next day close-open gap is greater than the percent set.
With options when an opening gap occurs and triggers the stop, the contract expires worthless or the risk per trade, ignoring commissions.
Is there a way to mimic this behavior?
Thanks