The Case for Automated Exits
Let me ask you something…
How many times have you made a “good” trade, but a “bad” exit?
If you’re like me… a lot.
You stare at the screen watching candles grind by, waiting to close at the perfect time — it’s hilariously impossible, right?
Either we get out and it keeps ripping… Or we don’t get out, it falls, and we wish we did.
Because no one is getting out on the “right” candle of any given trade. It’s just way too hard.
But as retail traders, we tend to make it a lot worse.
Whether it’s a little pullback and immediately thinking, “I’ll just grab profits early.” Or worse, convincing yourself to hold “just a little longer” and giving back everything you made.
That’s why I’m such a huge believer in automated exit strategies.
Not because they’re fancy or sound impressive, but because they remove you from the equation — and that’s where most traders screw things up.
When you trade debit spreads or defined-risk options, you already know your max loss. That’s the easy part. But how often do you actually stick to a profit target?
I started testing automated strategies because I wanted to take emotions out of my exits. What I found was eye-opening: spreads with a pre-set Good-Till-Canceled (GTC) limit order at 25–40% profit outperformed manual exits by a wide margin.
Trades hit those targets more often than I expected — not because of luck, but because the market frequently gives you that small move before reversing. My average return per trade jumped, even with a slightly lower win rate, because the exits were consistent.
The math worked better than my instincts.
And here’s the big thing I want you to think about:
Do you think the probability is higher if you pick a random date and hope the price finishes above your chosen level on expiration?
Or is the probability higher that at some point between entry and exit you’ll get a simple move in your direction?
Obviously, your odds are exponentially higher that at some point you’ll get that move.
So instead of trying to perfectly time “Hey, on this date, the price will expire right here,” you can just set up your trade so that anytime the move happens, your broker cashes you out automatically.
You’re not staring at a screen waiting for that perfect candle. You’re simply saying, “The probability is that at some point it’s going to make this move — and when it does, I’ll be out with profit.”
That’s the beauty of automation.
And here’s the real benefit — automating trades isn’t just about better numbers, it’s about better decisions.
When you know your spread is entered, your risk is defined, and your profit target is already waiting, you stop babysitting trades. That’s huge.
First, you free up mental bandwidth to scan for the next setup instead of sweating over the current one.
Second, you trade more consistently. Automation forces discipline, and discipline is what separates the amateurs from the pros.
I’m not saying you should blindly automate everything, but for income-style trades — especially on tickers like SPY, QQQ, or Tesla — automation is a secret weapon.
It’s simple to start. Pick a high-probability debit spread with defined risk, place your entry as “one ticket” so your legs fill together, and the moment your order fills, set a GTC limit order for your profit target — 25–40% is a great starting range.
Then walk away. Seriously. Let the system do its thing.
You might be surprised how freeing it feels to not constantly check your P&L. And if you stick with it long enough, you’ll start to trust the process instead of second-guessing every tick.
Automation isn’t about being lazy — it’s about being smart.
The less you interfere, the better your odds of trading like a professional.
Hope this helps,
— Nate Tucci
P.S. See setups like this and much more every weekday at 10am ET in the Opening Playbook. Don’t miss it!
