About this template
This bot helps me manually trade 2 of my favorite manual strategies - the ORB and the IWM Reversion.
(Updated for V8 and v9)
Strategy 1: ORB is Opening Range Breakout.
This is a common strategy, but one we can not fully automate (because we can’t set dynamic entrypoints based on 15m candles). I used to trade this manually using the SPX, but lately I don’t have time to do it - so I built a bot to help me.
I use the ORB by watching the first 15 minute candle of SPY. Once it’s formed - I mark the high and the low (I use TradingView - I have 2 lines that I just drag into position that already have alarms tied to them). Sometimes I will adjust up/down a little if I see strong support/resistance nearby. I then switch to a 3 minute chart and wait for a candle to close outside that Opening Range - and then I enter (see image in the thread). If it crosses the High Line moving up - I enter a Bull Put Spread (the Green ORB Bullish button). If it crosses the Low Line moving down - I enter a Bear Call Spread (the RED ORB Bearish button). I use Delta .25 on the short leg - and a $5 spread to the long leg (fixes my theoretical risk to $500 per contract - but that’s not my real risk due to my stop loss).
Exits are 100% stop loss (100% of credit received); and a 35%/5% trailing stop. Many times the 50-70% move happens and then ticker reverses and pops me out with a nice win. Sometimes the move is strong enough that I get the full 100% (but those days are infrequent… happens when market just keeps advancing hard in one direction or other). Typically my risk per contract is between $25-50 (this is the credit received).
This bot helps me because I don’t need to think about it… it calculates my short and long entries, quantity to trade (which I set in advance), and then monitors the trade for the proper exit. When my alarm alerts me… I just hit the button and Im done in seconds without thinking about it.
v3 Update (depreciated):
I am testing 2 additional exit strategies (paper testing...). First is opening a second spread. Initially this spread has the same exits as the first. I am trying to find the right monitor combination to help it hold longer - possibly until the end of the day - to take bigger profits when appropriate. Note in v8: I removed the testing. I wasn't using it - they weren't working as well as the original strategy.
Strategy 2: IWM Reversion (I admit - I have not been trading this strategy lately - focused on SPY an QQQ ORBs).
Many times, when the gap is big enough, the IWM seems to revert back towards yesterday’s close. On those days - I place a spread opposite that move. This does not happen every day - I see maybe 2-3 times a week. I usually watch for a gap of at least .50, and I like a clear day (the premarket price is pretty clearly in one direction or another (not up and down across yesterday’s close). When that happens - I wait for the IWM to show a reversal towards yesterday’s close (I typically watch the SMA5 on the 3min chart).
Once the SMA5 is pointing towards yesterday’s close - and if the gap is still big enough… I press the IWM Reversion button. It will calculate the direction the trade needs to be, the quantity (predefined in your settings), and place the spread trade using the same exit options as the ORB. Just like ORB - I don’t have to be perfect with IWM entry… I just want to be not really wrong.
Additional notes - many times I think I’m going to lose and I think I should just close it early to minimize the loss. Don’t (my opinion - you do what you want). Time is working in our favor and many times a little Reversion swing happens and it ends up being a winner. The beauty of using a spread (instead of long call/put) is I don’t have to be right… I just need to not be really wrong.
I don’t have a chart to share with you (since it’s a manual strategy - results will vary based on your actions). I have been using the ORB strategy manually for long time (with SPX) - it’s been good and reliable (about 85% win rate). IWM reversion seems to work about 75% of the time. I would test these strategies on paper before going live with your cash. I’m open to feedback on the spreads I chose (I tested many combinations before settling in on this but that doesn’t make it best) - or any variations to these trade strategies. I have heard of people doing ORB on other symbols - I’ve never tried.
