About this template
This bot is based of the Trading the Opening Range: Mean Reversion vs Trend Following that the OA Team put together. I have traded it both live as well as with my OA paper account for the past few months. It has worked well on both SPY and QQQ. I have not done any testing or backtesting on any other symbols. I have been running this bot on paper since November 21st 2022 and it has a 100% win rate on 37 trades.
I have also ran this on my live account, but it has not performed quite as well as I have exited a few positions based on emotion. If I would have rode it out until the end of the day, my live bot would have very similar performance. If you run this bot live , just check the performance of this bot at the end of the day ;) This is not a perfect bot and can be very risky, I recommend paper trading it for a while and watching the positions through out the day to see if you can stomach some of the down turns.
This is the first bot template I have shared in this community, or any options trading community for that matter. I have only been trading options for about a year, so I am no expert. I have learned a lot from this community and hope this gives back in some small way! I am open to suggestions, recommendations etc. to help improve this bot. Let me know what you think!
It looks to enter positions at 2 different times:
- Market Open
- 10:30 AM EST
The entry criteria for market open position is looking to see if the market as gapped down 1% since market close from yesterday. If the market has gapped down 1% or more since yesterday, the bot will open a short call spread with a 35 delta short leg and a 10 delta long leg. It then looks to exit this position at a 40% profit target.
The entry criteria for the 10:30 AM entry looks for a 0.01% decrease from the open intraday. If this criteria is met, the bot will open a short call spread with a 35 delta short leg and a 10 delta long leg.
Here are some screen shots of the performance for this bot from my paper trading account.