New 0DTE Research + Learn To Automate a 0DTE Trading Strategy
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- Опубликовано: 10 сен 2024
- www.optionalph... - New 0DTE research on the rate that SPX closes within a .1%-.5% range from a specific time of day. Plus step by step instructions to create a bot to automatically trade the research data.
Download the research data here:
app.optionalph...
The bot is available as a template here:
app.optionalph...
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 are my own personal trades not trading advice.
Awesome 🤩 I have just started with OA last week. I followed you and deployed my first automation bot and got a winning trade ! Even special for me because it is first trade that is closed so far.
Awesome. Happy to hear it is working out! I will be sharing an update to this bot after our new release on Monday that keeps the allocated capital deployed in low volatility situations (based on the same research data) with late in the day IB and debit spreads.
Awesome! Thank you for the video and sharing the research. I am testing it out on my live account. I a VIX check on the entry criteria. For the .5% and .4% positions, I set the VIX check to be less than 35. For the .3% position, I set the VIX to be less than 20. I guess we'll see how it goes.
Thanks for the video! I'm going to papertrade this bot for sure this week. My normal debit trade bots are getting decimated in this environment.
I recently switched from running debits to credit spreads too. The return of volatility is welcome!
@@OptionAlpha Jack at @5:24 you put the Long Call at $5.00 above the Long call leg, shouldn't it be at $5.00 above the short call leg? I could be wrong, or maybe it doesn't matter it just knows you mean the call side?
@@OptionAlpha where did you get the data for the analysis?
We have a real-time market data feed that provides pricing data throughout the platform + we store snapshots for each day. The intraday historical data for the research came from firstratedata.com
I love your shirt Jack
Thanks! 🙏
Love this. The platform has come a long way. I'm lifetime member (early adopter) but havent touched my account in 2 years. Time to get back into it! Is this bot available for cloning?
PS: love the t-shirts 🙌🏽✝️
Thanks Carl! I will be sharing it in the community as a template on Monday when we release the new version of the platform.🙏 ✝️
You did $5 above the long call. It should be $5 above the short call position
Yep, it produced an error on the first run and has been fixed
I'm new to trading, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have.
Hi Doyle, check out optionalpha.com/courses. The beginner track is a great place to start.
Hi, thank you so much for your videos, I noticed an issue in the opportunity when selecting the long call side of the iron condor, it was set to exactly $5 above of the long call leg, but it should be $5 above the short call leg, right?
Yep, it produced an error on the first run and has been fixed.
Was anyone able to get into a trade with the parameters specified in this strategy? I am running a paper bot on OA for the past few days exactly matching the values Jack mentioned in this video, and the BOT tried every 15 mins (no supercharging) and has failed to open a position every time. Is it just me or do we need to relax the conditions a little bit (may be reduce R/R to 80-90%). Any info is appreciated
Hey Jack, thank you for another great video! I was wondering, where do you guys get intraday data for e.g. SPY?
We have a real-time market data feed that provides pricing data throughout the platform + we store snapshots for each day. The intraday 1 minute historical data for the research came from firstratedata.com
Thank you!
These bots would really need to have the ability to define the slippage and take that into account in the price calculations.
Hi vikable. They do take into account slippage. The bot is set to allow up to $0.05 slippage from the mid price. At $0.05 slippage the reward/risk is still likely to be above 100% but if not it will be 98%+ which is still favorable with a 56-70% anticipated win rate.
@OptionAlpha I implemented as per the video and keep getting below error:
PT - Peggie Bank
had
an
error
in
IC Scanner 100%
.
Long Call input: long call leg not found.
What am i doing wrong here? Can you help?
@jackvslocum Can you please help me figure out the error ?
Hi Jay, the Long Call leg should be set to "$5 above the *short* call leg" instead of "$5 above the *long* call leg" in each of the 3 spreads. I will be sharing this bot (with updates) in the OA community on Monday, August 19th with that issue corrected.
Algorithmic trading! Regular retail traders could use this protocol as a logical & sequential methodology.
Shouldn’t it be $5 above the SHORT call?
Yep, it produced an error on the first run and has been fixed
Excuse my lack of experience, but why a nickel from mid price? Why not a nickel from higher price? Would less fills be the only reason?
The ".05 from the mid price" setting is the worst price it will accept to fill the position. The bot will automatically try to get an order filled at the mid price before it tries .05 from the mid price. For more info about how this works check out: optionalpha.com/help/smartpricing
I feel like that research only works in the same volatility range. The Vix was supper low for a long time, no longer.
Hi Tim, I originally thought the same thing. However, what our research has shown is that the majority of large price moves caused by the increase in volatility happen overnight and intraday prices tend to get "pegged" in a certain range at a certain time of day a statistically significant percentage of the time regardless of low or high volatility. You can contrast the difference between recent vs longer term using the 3 time ranges. Comparing the 30 day vs the 180 day value will give you a better idea of what the current trend is and even with recent volatility the stats are fairly similar.
@jackvslocum man, that's some in depth research, pretty impressive!!
Hi Jack thanks for the video. Under which name this Bot is available to clone and run. Thanks.
I will share the bot template in the community on Monday after the new release goes live. It is using a few features that are not available until then.
@@OptionAlpha Amazing. Will clone and run for sure.
Hey Jack, Great ideas.. Realise that the full market day is not yet available - but I don't have exactly 0 days available either?
Would also like to know how you generated the Peg Spreadsheet.
Hi WhiteRabbit. The "Exactly 0 days" option is a new shortcut for the option below it set to 0 days. It will be in our coming release. The Peg spreadsheet was generated from the backtest results using code and the excel4node module.
@@jackvslocum when will the next release be available? Also, is it possible to backtest this bot once created? Or is live / paper trading still the only option?
The new release will go live on Monday, August 19th.
If I understand this correctly the entry premium for this trade to be active has to be be 2.40 or better, so now the question is how many times that have happened ??
It has made 4 trades so far, +$318. I will be sharing an update to this bot after our new release on Monday that keeps the allocated capital deployed in low volatility situations (based on the same research data) with late in the day IB and debit spreads.
Hey Jack. What do you think about adding time based entries into the automation such as only running the .4 after 1pm if the .5 didn't kick in earlier and and a later time for the .3 so the bot has time to get into the best trade?
It would be easy to add time based checks and could be a good way to get into positions with the highest chance of success. The only concern I'd have is when volatility drops it gets harder to get 100% reward/risk later in the day so the bot may stop trading. Give it a try and let me know how you do!
Is it possible to have an auto time stop, so the possession is closing just before the market close.
Yes, you can set an "Exit Option" to the position to close at any time before expiration, e.g. 5 minutes before expiration.
Jack do you think you will have a hard time getting orders filled here? I glanced at some mid day numbers and risk/rew was more like 50 %. My guess is you have a much better chance of getting filled early in day but you lose some of the probability edge and visa versa end of the day. Do you agree. Appreciate the detailed bot build very helpful.
Yes, when volatility is low it will be hard to get the IC filled at 100% reward/risk. It has made 4 trades so far, +$318. I will be sharing an update to this bot after our new release on Monday that keeps the allocated capital deployed in low volatility situations (based on the same research data) with late in the day IB and debit spreads.
How do i get the bot supercharging without having to pay $500 dollars?
All live bots linked to a Tradier account have scanning every 1 minute for free
I dont have $25K in my account, so this does not apply to me.
I don't have $25K in this account either. These positions are held until expiration so they don't count as a day trade. I started this account from scratch with $10K in the beginning of this video series: ruclips.net/p/PLhKnvfWKsu42lN7znnqW110gdw6Gy5u3f
Check with broker. I think if you let it expire it does not trigger as a round trip for pdt.
Do you use this with ToS?
Option Alpha currently support Tradier, TradeStation and tastytrade.
Will you post the Bot in bot teomplates when that option is open to everyone?
Yes, I will be sharing an updated version of this bot in the community after our new release comes out on Monday. The updated version keeps the allocated capital deployed in low volatility situations (based on the same research data) with late in the day IB and debit spreads.
@@OptionAlpha thanks!
What are the best resources (books, websites, vids, etc.) before diving into options trading?
Hi Jose, check out optionalpha.com/courses. The beginner track is a great place to start.
@@OptionAlpha Thanks!
How much is this BOT and what broker platform does it work on ?
It's free, it runs on optionalpha.com and we support 3 brokers currently Tradier, TradeStation and tastyTrade.