The idea was to combine Long CALL/PUT with IC similar to Kirk's TM-"Trend and Momentum" and Kirk's HB-"Honey Badger". Long just refers to long positions instead of credit spreads and Epsilon just refers to it is already setup to run 5 tickers.
One of the things I noticed with longs is that if the trend is good they close out pretty quickly 15 days or less even at 90DTE. In my mind it seams faster premium changes versus Credit spreads I don't have the stats to back it up, it is just my opinion at this point. I designed the controls to make it easy to adjust delta and risk amount and exits. In the testing phase I want to tweak for quick exiting and more positions versus holding longer however it is easy to tweak the other way. Starting with a 50% profit exist and a 75% stop loss with a hard exit at 15 or 20 DTE depending upon the position type.
I have not tested this bot on paper or live yet I just kicked it off today on paper. I am posting it early so that others can run it too and give feed back.
Some features of interest:
- I put a dead man switch in, I make mine auto turn on on Wed at 12 noon that way there will be no holiday confusion.
- I put in several manual buttons for exiting and adding long call or put positions. Since the scanners only use 5 tickers you could trade a few tickers manually so that the monitors help you.
- Most of the controls are bot level controls see below.
- There are switches to turn off long call or long put or IC strategies.
- On the SQQQ scanner I kept the IC switch local to off since it is too volatile I did not want it trading ICs. I put in the SQQQ one more for testing to see how well it handles that type of ticker.
- VIX threshold
- I used the newer Indicator is a "buy logic combined with some RSI switches on entry and exit. The idea here was when RSI is very high get out of long CALL positions, when RSI is very low get out of Long PUT positions. See logic below.
- I tried to make the logic as concise at possible.
The Long Scanner is designed to only allow one position per ticker per week up to a max of 2 positions per ticker. One ticker per scanner for 5 total tickers available (within scanners). The idea is to not go too deep in too many positions on any one ticker since the trend may change.
Decision Parameters For Long CALL Entries
Decision Parameters For Long PUT Entries
Decision Parameters For IC Entries
Longs are 90DTE exit at 15DTE - bot level controls
ICs are 90-110 exit at 20DTE - bot level controls
Learn more about the options strategies this template could trade: