A trading bot is only as good as the rules you give it. Before you automate anything in a Robinhood account, it helps to write down exactly when a trade should open, when it should close, and how much it is allowed to risk. This guide walks through the four rule types most stock and options bots use, entry conditions, profit targets, stop-losses and position-size caps, plus the safety switches worth having. It also explains how DeskBot for Robinhood handles each one.
See DeskBot for Robinhood: $1 first month, then $19.99/mo, or $155/year
1. Entry conditions: when a trade is allowed to open
An entry rule should be specific enough that two people reading it would place the same trade. "Buy when it looks strong" is not a rule. A usable entry names the symbol or list of symbols, the condition that must be true, and any time window, for example only during regular market hours, or not in the first few minutes after the open when spreads are often wider.
Keep the first version simple. One or two conditions you understand are easier to test and debug than a stack of indicators you cannot explain. In DeskBot, entries only run on strategies you have armed, so nothing trades until you turn a strategy on.
2. Profit targets: when to take a win
A profit target closes a position once it reaches a gain you chose in advance, usually a percentage or a price. Without one, a bot can hold a winner until it turns into a loser. Pick a target that fits how the instrument normally moves: a target that is rarely reached means most trades end at the stop or the time limit instead.
3. Stop-losses: when to cut a loss
A stop-loss closes a position once it falls a set amount. It caps how much a single trade is meant to cost, but it is not a guarantee. Prices can gap past a stop overnight or on news, and a fast market can fill an exit well below the level you set. Options in particular can move sharply and can lose their full value.
A practical check is to ask: if every open position hit its stop at the same time, could I accept that total loss? If the answer is no, the stops or the sizes are too large.
4. Max hold time: when to give up on a trade
Some trades never reach the target or the stop. A max hold time closes them after a set period so capital is not stuck in a position that is going nowhere. For options this matters more, because time decay keeps working against a long option while you wait.
5. Position-size caps: how much any one trade can use
Size caps limit the dollars or contracts a single trade can use, and ideally the total exposure across all open positions. They are the rule that most often separates a bad day from a ruined account. Start smaller than you think you need while you confirm the bot behaves the way you expect with real orders.
6. Safety switches: pause and alerts
Any automation should have a way to stop it immediately and a way to tell you when something is wrong. DeskBot for Robinhood lets you pause the engine at any time and warns you if the broker connection drops, so you are not left assuming trades are being managed when they are not.
A simple rules worksheet
- Symbols or watchlist the strategy may trade
- Entry condition and allowed time window
- Profit target
- Stop-loss
- Max hold time
- Max size per trade and max total exposure
- What makes you pause the bot (daily loss, news, connection trouble)
Write it down before you arm anything, and keep a journal of what the bot did versus what you expected.
What DeskBot for Robinhood includes
- A desktop app for Mac (Apple chip or Intel) and Windows that runs on your own computer.
- The DeskBot Stocks dashboard with engine status, armed strategies, charts, orders and journals.
- Rules for entries, profit targets, stop-losses, max hold time and position-size caps, for stocks and options in your own Robinhood account.
- Pause and broker-connection alerts. Your API credentials stay on your computer, and DeskBot never holds your funds.
- A Robinhood phone companion is still in development. Today's DeskBotHQ Android app works with DeskBot for Kalshi only.
You will need your own Robinhood account with API access turned on and a computer that can stay on while DeskBot runs. The setup guide comes with your download.
Pricing
$1 for the first month, then $19.99/month, or $155/year. It is a paid subscription, not a free trial, and it renews until you pause or cancel. See the product page for platform options.
More DeskBot guides: browse every Kalshi, Robinhood, TopstepX and Pump.fun guide in one place on the DeskBot Guides hub.
Related guide: How to Test a Trading Bot Before You Trust It With Real Money walks through demo runs, small live caps and the records to keep before you scale any desk.
Risk disclosure: Trading stocks and options carries a real risk of loss, and you can lose more than you expect. Stop-losses and size caps reduce but do not remove that risk. DeskBot is software. It is not financial advice and does not guarantee any profit. Past or simulated results do not predict future results. You are responsible for every trade made in your accounts. DeskBot is not affiliated with, endorsed by, or sponsored by Robinhood Markets, Inc. Use is subject to the DeskBot Terms of Service.