0DTE Backtesting + my new fav 0DTE strategy
HTML-код
- Опубликовано: 4 окт 2024
- www.optionalph... - Quick intro to 0DTE Oracle, a new tool to help find 0DTE and next day trading opportunities. Each trade's metrics are backtested against the underlying's previous 1 year of intraday minute data to see how trading a similar position daily would have performed over that time. In this video I also catch up on recent earnings trades results and cover 0DTE trades I've made today using my fav new strategy.
Check out the rest of the Options Trading 2.0 playlist in which I set up and trade a $10K account from scratch:
• Options Trading 2.0
These trades are my own personal trades not trading advice.
A strangle, an iron butterfly, and an iron condor goes into a bar... I'm interested in seeing the combined risk profile.
Good to see you Jack! What a GREAT valuable feature we have now with 0DTE! Thank you OA team for always giving us goodies!
Amen! I've subscribed to OA since January - they communicate in straightforward and understandable manner for this retiree. BTW, because of them I'm mostly "in the green"! Thanks OA (ps - this is not a paid endorsement)
I’ve been trading the short Iron Butterfly part of this strategy for quite awhile with decent success. I think it’s important to share that getting filled at $4.50+ on a 5 wide ironfly 90 minutes before the close - is not easy unless SPX is trading at least 10 points away. And of course - if we’re trading 10 pts away from the center strike, the probability of profit is pretty low (like really low). I like the idea of layering the long Iron Condor - thank you for sharing Jack!
That's a great news! Possibility to trady SPX is a gold. Plus screener for 0dte...
This is top of minute data and assuming what entry & exit slippage? all of that profit can purely come from bid / ask slippage assumptions
please make more video about 0DTE SPX… thx
Great video. Couple questions. Does the analysis include any commissions? Why would you rather do múltiple contracts in a 5 wide IB vs one contract in a say 25 wide IB? Does the analysis support that?
looks like all the places that do backtesting for their service never do. once you account for commissions, fees, and slippage everything 0dte is unprofitable from what i've seen (i did some backtests myself in my channel if you want to review it)
Hello Jack, Thanks for doing this, could you please make a video especially, i was not sure how you bought those protective legs within the trade,Thanks
Would be dope if you could bring in qualitative market sentiment, as a condition for a trade
on your 1 year backtests are you including commissions, fees, and slippage? all that profit might go negative once you account for those, no?
When you will have API to Interactive Brokers ?
Do you have a template for your manual trade bot or have you shared it on the community page? I have seen you use it in several videos, but wanted to know what parameters you gave it.
What do you think is the best options strategy?Iron condor,Butterfly,Call debit spreads? New to options
Something tells me you could automate all of those after the initial oracle trade is placed. I'm going to give it a shot today.
I'm interested if you've figured out how to do this? If so, I'd like to look at the OA template name!
Hello. Any way to increase the spread width to 50 or so? With SPX 25 is just not enough when volatility increases.
How come you can't make a bot automatically out of these?
We're still brainstorming how that might work on the backend. It's on the list.
Love it and your tshirt too btw. Peace
Great Job Jack. What is your exit strategy?
I typically hold to expiration except when the long put or long call go deep ITM then I take the big profit off.
@@OptionAlphawhat do u do if the iron condor is a loser ITM at expiration? if take assignment, need pay fees. so, close loser spread 5 minutes before expire, and close short leg of winning side?
Nice!❤
Nice Video. Can we can backtest using third party Buy/Signals signal?
No, only the preconfigured signals inside of Option Alpha at this time. But you can execute an automation with any kind of signals you want using inbound webhooks.
I don't get it. Why is it that you are looking at historical data to speculate what will happen now with ODTE? Isn't the disclosure that past performance is no guarantee for what's to come. Just help me understand this concept please.
This is not like a traditional backtest. It's showing you what would have happened if you found the same exact trade every single day the underlying traded over the past year. So if you found the same iron condor at 2PM in SPX every day for the last 252 trading days and the win rate was 10%, you may not want to enter that position.
Thats a statement to cover analyst ass.
U generally do expect past indicative of future in probability or real life.
Just like ur class top student likely to get a good grade .
And lowest performing student likely to drop out.
Did this make ~$135 at close (with SPX closing at ~5475 that day), or did you work the legs early?
Yep, Jack let it expire. Made around $150.
@@robertcernera8905 gotcha, thanks! Think it would have been $135 on paper: $635 credit and a $500 loss from the ITM credit spread (also less the costs/fees trading the 10 legs and assignment fees on two). Still like 37% return on risk though, pretty awesome with a 0DTE trade that isn't buying OTM singles or something lol
Witch time of the day you buy it and sell it?
Why not just use 1 wider fly from the get go?
@deltatrader72, I trade a lot of 50 wide 0 DTE butterflies earlier in the day. 40 wide with lower volatility. My criteria to adjust is when 1 of the spreads gets challenged by closing that short if it gets about half way to the breakeven strike. An alternative is to add a long like Alpha Option is doing and to keep that short in play if I have conviction that price may return. After modeling in OptionStrat, I think the long is best served at 40 wide. I have traded a lot of last hour butterflies. The premium is usually so much lower that 50 wide doesn't make sense other than buying power. Last hour trading can work but gamma can be an evil bitch.
What's this?