About this template
I thought I would start a new post for this template. It was originally a part of a bot set and since I've been focusing on this particular bot more recently, I didn't want the updates to be buried in that original thread.
V.1 - INTRODUCTION
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📈 Trading with the trend
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Each day, the bot uses the 5 and 14 EMAs to determine if SPY is in a short-term bull, bear, or neutral trend. It then opens an iron fly that is skewed in the direction of the trend in anticipation that SPY moves into the max profit range within a day or two.
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😱 Reducing market exposure
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The iron flys are either 3 or 5 DTE depending on which day of the week the bot enters the trade. This is to 1) minimize the total number of open positions and 2) prevent multiple positions expiring on the same day. On average the positions are only open for 1.5 days.
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💵 Locking in profits early
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The exit options are set to 10% profit or -20% stop loss. I chose to take profits early to further reduce market exposure risk and avoid multiple open positions. If neither target is hit, the position will close 1 day before expiration. Average win is $59 and the average loss is -$116.
