How to Use Advanced Trading Tools  Probability Lab
How to Use Probability Lab
Analyze the probability of stock price or volatility forecasts using your market predictions!
Easily enter your predictions to view potential option combos based on your inputs! 

How to Open the Probability Lab
How to Use the Probability Lab

The Strategy Scanner (in the panel below the PD Builder) will display three potential combination option strategies that complement >>>
Please Note: All probabilities must add up to 1.00 so you will see the other levels adjust when you make changes in any price interval.

your customized PD. For each strategy (and based on your custom PD) the selector displays the Expected Profit, Sharpe ratio (which shows the ratio of expected profit to variability of outcome), net debit or credit, percent likelihood of profit, max potential profit and loss and the associated probabilities, and the margin requirement if you were to trade the strategy.
4. To create an order, in the Strategy Scanner select the strategy. To view colorcoded representations in the Strategy Performance Detail graph, check the strategy. a. Probability Basis  Choose the probability basis for calculations using the dropdown selector. b. Existing Positions  If you have elected to Include Existing Positions when building strategies, you now have the option to view data (including P&L in the performance details graph and data point in the strategy scanner) both including and excluding your existing positions in the underlying using the Existing Positions checkbox that will display next to the Probability Basis dropdown list. Check to include; uncheck to exclude. 5. In the Strategy Adjustment/Order Entry panel, adjust any parts of the strategy by clicking in a field in the leg you want to modify. For any leg, you can modify the action, ratio, expiry, strike or type. 6. Once the legs are defined, use the Order Entry line to modify any order parameters. Use the advanced order area to create a hedging stock order and to attach order attributes including iceberg and all or none. 7. When the order is ready to be sent, click Submit. 8. Use the Strategy Performance Detail graph to see the predicted profit or loss that would result from the selected trade if your forecast is accurate, along with the associated probability that corresponds to each price point. Use the dropdown list to select Delta, Gamma, Vega, Theta or Rho for display.



How to Adjust the Probability:Easily adjust the probability using the up/down arrow icons near the values, or by dragging the hand icon to the left or right within the distribution graph. 


Sophisticated Trading Tools Order Types & Algos Place Trader Workstation (TWS)
Looking for more details about how to use other TWS apps? Check out the Place Trade Workstation Users Guide
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