About this template
Replication of a popular trading strategy on youtube. Short term options typically breach the expected move. When vix is low, the batman opens two iron butterflies centered on the 25 delta call and put side. The 10 dte was defaulted in the template to ensure enough premium is available to cover commission. It also avoids the typical delta crunch on the strike widths using 0 dte spy. When vix is above 20 a simple 10 dte put credit spread is opened since it backtested as profitable.
Monitors - Iron butterflies are monitored with a 65%/15% trailstop or closed and rolled when the long leg of the short side is breached. When a butterfly is closed on either side another butterfly is immediately opened based on movement of the underlying, also assuming vix is still under 20.
My first template posted. Figured I'd like to share something after browsing templates shared by everybody else. It wasnt possible to backtest the iron butterflies on OA but I was able to backtest and provide data for the short put spread below. Keep in mind returns can always be juiced by increasing allocation typically at the expense of max drawdown. Enjoy and appreciate any testing results or feedback.
Cheers,
Karl
