Close & Re-Enter (Rolling)

Close & Re-Enter is the most powerful adjustment action in Algo Architech. When triggered, it closes the affected legs and immediately deploys new ones — enabling seamless position rolling, bias reversal, and dynamic hedging.

How It Works


Trigger Condition Met (e.g., Net Delta > 0.40)
        │
        ▼
┌──────────────────────┐     ┌──────────────────────┐
│  CLOSE               │ →   │  RE-ENTER             │
│  Liquidate targeted  │     │  Deploy new legs      │
│  legs immediately    │     │  using selected mode  │
└──────────────────────┘     └──────────────────────┘

Re-Entry Modes

When re-entering, you choose how the new position is constructed:

Original Logic

Re-deploy the same leg configuration as the original entry, but at current market prices and strikes.

Scenario	What Happens
Original: Sell 22000 CE	Close the 22000 CE → Re-sell at the new ATM-relative strike (e.g., 22200 CE if market rallied)

Best for: Rolling strikes further out when the current ones are under pressure.

Custom Legs

Deploy an entirely different leg configuration from what was originally entered. You specify new:

Transaction type (Buy/Sell)
Option type (CE/PE)
Strike criteria
Lot quantity
Expiry

Best for: Completely restructuring your position when market conditions have fundamentally changed.

Reverse Entry Side

Flip your directional bias instantly. If the original position was bullish (long calls), re-enter with a bearish position (long puts or short calls).

Best for: Momentum-following strategies that want to ride the new direction immediately.

Real-World Examples

Example 1: Rolling a Breached Iron Condor


Original Position: Iron Condor on Nifty
  Sell 22100 CE (under pressure — market rallying)
  Buy  22300 CE
  Sell 21800 PE
  Buy  21600 PE

Adjustment Trigger: Net Delta > 0.35 for 2 bars

Action: Close & Re-Enter → Custom Legs
  Close: Sell 22100 CE (breached)
  Re-Enter: Sell 22300 CE (further out) + Buy 22500 CE (new wing)

Result: Call side rolled 200 points higher, reducing risk while
        maintaining the structure. Put side untouched.

Example 2: Momentum Reversal


Original Position: Bull Put Spread (bullish bias)
  Sell 21900 PE
  Buy  21700 PE

Adjustment Trigger: SMA(20) crosses below SMA(50) for 2 bars
                    (Bearish momentum shift)

Action: Close & Re-Enter → Reverse Entry Side
  Close: Bull Put Spread entirely
  Re-Enter: Bear Call Spread (automatically constructed)
    Sell 22100 CE
    Buy  22300 CE

Result: Strategy autonomously reversed from bullish to bearish
        to ride the new momentum direction.

Example 3: Volatility-Based Roll


Original Position: Short Strangle
  Sell 22200 CE (Current Week expiry)
  Sell 21800 PE (Current Week expiry)

Adjustment Trigger: Vega exposure exceeds threshold

Action: Close & Re-Enter → Original Logic + Expiry Change
  Close: Both current-week positions
  Re-Enter: Same strikes in Next Week expiry (more time premium)

Result: Rolled out in time to collect additional theta
        while reducing gamma risk.

The Trading Edge

Mechanical Agility

If a Bull Put Spread is profoundly breached, most platforms just trigger a stop-loss and mandate a maximum loss. Close & Re-Enter transcends this limitation.

The system can autonomously close the damaged spread, harvest any theta remaining on the safe leg, and deploy a completely new configuration further out in time or strike. It can even reverse the bias entirely — if the Bull Put Spread failed because the market crashed, the engine instantly deploys a Bear Call Spread to ride the momentum downward.

This turns a botched, red trade into a salvageable, rolling defense. This is true mechanical agility — and it’s fully automated.

Configuration Steps

Create an Adjustment Rule and set your trigger (Indicator, Greeks, or Historic Signal)
Select “Close & Re-Enter” as the Action Type
Choose the re-entry mode:
- Original Logic (same structure, current prices)
- Custom Legs (entirely new configuration)
- Reverse Entry Side (flip direction)
If Custom Legs: Configure each new leg’s transaction, option type, strike, lots, expiry
Set consecutive bar confirmation to avoid false triggers

Next Steps

With positions opening, adjusting, and rolling autonomously, the final step is defining when to take profits and cut losses:

→ Next: Exit Strategy Overview