Trade Ideas 2.0 revolutionizes the way you find potential trading opportunities. The platform release updates the existing tool with new filters, enhanced sorting functionality, and autotrading. Options trading is about finding and using EDGE. Now you can leverage automation to identify, quantify, and execute high-probability setups using data and probabilities based on the top performing trade setups used by all of us.
Trade Ideas solves two significant problems all options traders encounter. First, it helps traders who don’t know what to trade. Options trading presents endless possibilities and leg combinations when finding potential positions. But finding the best opportunities has always been a challenge and, more often than not, based on subjective or emotional decisions. Trade Ideas is the solution that provides you with multiple trade types using data and probabilities.
We have published multiple Research Insights blogs to analyze how pre-trade EV and Alpha values compare to realized P/L results using Trade Ideas positions.
Trade Ideas takes the universe of potential combinations for tickers, deltas, and expirations to present us with the best opportunities that meet our requirements.
For example, you can quickly target your watchlist symbols for neutral trades with at least a 70% probability of profit.
Second, you can now autotrade based on live market data and your preferred criteria. We know the only way to exploit high probability is to execute trades consistently as much as possible. You simply input the settings you care most about and let the bot find and open trades in the best possible opportunities automatically.
Enter your filters and click ‘Auto Trade’ to create an automation that looks for your detailed setup for one or more ticker symbols.
Once you’ve identified the trade setup you want to enter repeatedly, you can choose up to 10 ETFs to run the strategy on.
The tickers are automatically included as a symbol loop inside your automation. All the Trade Ideas settings and opportunity filters also populate as automation settings in the bot.
Entry and Position criteria
You can add or modify additional Entry and Position Criteria, including a minimum EV and Alpha value. Lastly, tell the bot to rank ideas by Alpha, EV, or probabilities when evaluating multiple opportunities.
Trade Ideas by symbol
The new symbol dropdown list lets you easily include or exclude multiple tickers in your search filters (or use the same text based entry if you choose). The number of available trade ideas is also now visible for each symbol. For example, AAPL has 145 trade ideas and AMZN has 242.
EV and Alpha
This release also includes EV and Alpha, which will change the way you find trading opportunities. Option Alpha calculates EV for every price point in the position’s payoff diagram to give the true expected return to help you identify the long-term anticipated outcome for any potential trade.
You can now sort all trade ideas by their expected value. You can even add this to the Trade Ideas action in an automation.
You can also rank and filter all trades by their Alpha. Alpha divides a position’s EV by its max loss to quantify each trade’s risk-adjusted anticipated return. This allows you to normalize multiple trades across different tickers and position types.