---
title: Strategies & Agents Overview
slug: strategies-and-agents-overview
createdAt: 2025-05-19T03:39:52.838Z
---

Option Circle revolves around two core components: **Strategies** and **Agents**. Together, they give you powerful tools to automate your trading while maintaining full control over risk, logic, and performance.

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## What is a Strategy?

A **strategy** is the container for your trading logic, risk settings, and capital allocation.

Think of it like a portfolio sleeve—you decide how much of your budget to allocate and what type of trades to run inside.

### Purpose:

Helps you manage risk by segmenting your capital into separate trade plans.

### How It Works:

You assign a percentage of your total budget to each strategy (e.g., 20%, 50%, 100%), allowing you to:

- Diversify across trade styles (income, growth, hedging)
- Align with your personal risk profile
- Control exposure across asset classes

:::BlockQuote
**Example:** Allocate 30% of your account to a “Conservative Income” strategy that uses low-risk trades like covered calls.
:::

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## What is an Agent (Bot)?

**Agents** are automated tools that execute your strategy’s trading rules. Once deployed, they run 24/7 to monitor conditions and act without emotion.

### Purpose:

Automate trade entries and exits based on predefined signals.

### How It Works:

You build logic like:

- “Buy when RSI \< 30”
- “Sell when price reaches 20% profit”
- “Open position if MACD crosses up”

Each agent follows these instructions in real time, using the budget tied to its strategy.

### 🔀 Modularity:

One strategy can use **multiple agents**, each with a distinct function:

- Entry Agent (opens new positions)
- Exit Agent (manages stop-loss or profit-taking)
- Hedging Agent (adjusts exposure using index puts or volatility)

:::BlockQuote
**Example:** In a “Conservative Income” strategy:
:::

- Agent 1 buys calls when the 50-day MA is crossed
- Agent 2 exits the position when a 15% target is hit

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## 🔁 Combining Strategies & Agents

Together, strategies define **what capital to use** and agents define **how to trade** within that capital allocation.

| Component    | Function                 |
| ------------ | ------------------------ |
| **Strategy** | Budget & risk definition |
| **Agent**    | Trade execution logic    |

:::BlockQuote
**Example Setup:**
Allocate 40% of your portfolio to high-volatility trades
→ Agents trigger buys and sells based on **Bollinger Bands**, **ATR**, or **volume spikes**
:::

***

This modular approach gives you control and flexibility—so you can scale, automate, and adjust as the market evolves.