About this template
This bot was created to take advantage of historical tendencies of SPY around Fed announcements. Over the last 10 years (about 80 fed announcements), SPY has increased the two days before the Fed announcement, and decreased the following two days after the Fed announcement. Keep the trades small. The bot belongs in the speculative part of your portfolio.
Note: The above chart is based on end of day data. The vertical line is end of day on Wednesday.
This bot will take directional bets by buying an at-the-money (ATM) long call spread on Monday afternoon before the announcement and closing at 25% profit or after 2 days in trade (DIT). The post-announcement trade buys an ATM long put spread near the close on Wednesday, and closes it after a 25% profit target or 2 DIT. I had the bot running prior to the last FOMC announcement, so there is very little trade history.
This bot currently is *not* pattern day trading (PDT) safe. While it is unlikely that the bot will close positions after 5 minutes of monitoring (3:45 to 3:50 pm), it could happen. If you are concerned about being flagged with PDT, check the "Wait at least 1 day to avoid pattern day trading" in the exit options.
The bot initially used "Scheduled Event Triggers" to schedule the automations to run at the appropriate. The Wednesday long put open automation would send a reminder to manage the schedule for the next FOMC meeting. I refactored the bot to use the newly-released FOMC decision recipe. I also changed the opening times to be 3:45 on Monday/Wednesday instead of 9:45. Both spreads have a profit target of 25%. I suspect that can be changed to something better using a combination of Profit Target and the SmartStops/Trailing Stops exit options.
The Long Call Spread is opened on the Monday prior to the Fed Announcement with the target expiration being that week's Friday expiration.
The Long Call Spread is opened on the Wednesday afternoon, after the Fed Announcement with the target expiration being the next week's Friday expiration.
