Elastic & Re-Entry Orders
Stops and targets that adapt to market volatility. Positions that re-enter after whipsaws.
Elastic Orders are currently in development and not yet available.
What They'll Do
Elastic Orders will automatically adjust your stop-loss, take-profit, and position sizing as market volatility changes. A stop-loss that makes sense at 20% volatility gets shredded by noise at 60% — elastic stops will widen when volatility spikes and tighten when it contracts.
The core concept: market conditions change, so your position parameters should too.
Re-Entry Orders will solve the frustration of getting stopped out by a wick only to watch the market resume in your direction. After a stop-out, if conditions still support the trade, the order will automatically re-enter at a favorable price with configurable size adjustments and maximum re-entry limits.
Elastic Orders: The Problem
A stop-loss that makes sense when volatility is 20% gets shredded by noise when volatility spikes to 60%. A take-profit distance that works in a trending market is too tight in a ranging market. Static parameters are wrong half the time.
Elastic Orders fix this. Your stops, targets, and position sizing adjust automatically as market conditions shift.
How Elastic Orders Work
An Elastic Order monitors live market conditions and adjusts its parameters in real-time:
- Elastic Stop-Loss, Widens when volatility spikes (so you don't get stopped by noise), tightens when volatility contracts (protecting profits)
- Elastic Take-Profit, Loosens in strong trends (let winners run), tightens in choppy ranges (lock in gains)
- Elastic Position Size, Scales position inversely with volatility (smaller when conditions are uncertain, larger in favorable conditions)
- Elastic Entry Limits, Limit price adjusts based on bid-ask spread (tighter when liquidity is abundant, wider when spread widens)
The core insight: Market parameters change. Your position parameters should too.
Re-Entry Orders: The Problem
You get stopped out by a wick. The market immediately resumes in your direction. You watch your thesis play out without you. Frustration sets in.
Re-Entry Orders solve this. After you're stopped out, if conditions still support the trade, the order automatically re-enters at a favorable price.
How Re-Entry Orders Work
A Re-Entry Order monitors:
- Stop-out trigger, You were stopped out
- Re-entry zone, Price returns to a favorable entry range
- Thesis validation, Original conditions still hold (regime, signals, correlations)
- Risk capacity, Your portfolio has room for the re-entry
When all conditions align, the order automatically re-enters.
How Agents Use Elastic & Re-Entry
Koda executes Elastic Orders by default:
- Riven specifies an elastic range (min: 1%, max: 4%)
- Koda monitors market conditions and adjusts parameters
- Brix ensures no adjustment violates portfolio risk limits
- Lucid analyzes: did elastic parameters improve fills?
For Re-Entry:
- Riven builds a strategy with re-entry enabled
- Koda executes the initial entry
- If stopped out, Koda watches for re-entry conditions
- When triggered, Koda automatically re-enters
- Brix monitors total re-entry sizes to prevent overleveraging
Combine elastic stops with Vanta's regime detection. In compression (high volatility), use wider stops. In expansion (low volatility), use tighter stops. Your risk parameters adapt to regime automatically.