LIVE | 30DTE | Ride the tasty Wave non-ETF

Ride The Tasty Wave - NON-ETF version from live trade testing

combined with Cherry Picker / Bottom Fisher Scanner

Bot Desc:

This bot is an offshoot of @Vinwag's original Ride the tasty wave (based on tasty works strategy).  His original bot was targeting ETF tickers.  This bot was honed with Live trading starting in November 2022 on all non-ETF tickers.  I started with Vinwag's v1 and added some of his changes to it but ultimately I put in several small tweaks of my own.  They are very similar bots but I am not keeping close track of his I have mostly been tweaking based on what I see with the live trades.  The only recent change that is new to mine and should be similar to his is the early exit monitor.  This monitor is based on the tasty early exit strategy that I added and shared with him.

If you are looking to get your feet wet with live trading with low risk this is a good starting bot.  You can lower the position size by changing the deltas and turning off the IC opening logic, or turning the open position count down.  I find live trading to be different enough from paper trading that I wished I had done more live trading with the bots last year.  Last year I mostly paper traded chasing ideals that will never happen with any bot system.  Nothing like having skin in the game to make you learn faster...

Position types:  

SCS, CCS, IC

Bot risk:  

I have been running it live with 2k only.  I find testing live is different than paper trading so I try to do as much live as I can without letting a bot kill my account.

Position Size / Risk:  

All positions - single contract

Most spreads fall in the 350-500$ range

ICs fall in the 700-1000$ range

DTE: 

SCS/SPS - 45 day monthlies

Ticker Entry indicators (all position types):  

- Mon-Friday but stop at noon on Fridays to avoid late week.

- IVR above 35

- Only one position per ticker at a time.

Ticker Entry indicators (CS entry):   

- SHORT: RSI intraday and 1 day ago > 79, Symbol > 5d EMA, 5d EMA > 14  day EMA

- LONG: RSI intraday and 1 day ago < 30, Symbol < 5d EMA, 5d EMA < 14  day EMA

Ticker Entry indicators (IC entry):   

- BBANDS(20,1,EMA) between lower and upper bands intraday and 1 day ago

Opportunity vetting: 

- Bid Ask Spread < 0.35

- Min Rate of return > 15%

- Min probability of profit > 68%

Exit Monitors:

I am running Vinwag's original monitor with a few small changes and an early exit monitor with a bid/ask cascade monitor.  Ignore the long monitor it is not used for this clone (you can delete).

In a nut shell:

- if position has been open 21 days close, changed to 25market days per v5

- if position has been open 20 days try for 40% ROR exit

- if position has been open 15 days try for 30% ROR exit

- if position has been open 8 days try for 20% ROR exit

- if position has been open 5 days try for 15% ROR exit 

-NO 1 min options used for CS, for IC set to 25% - changed to none for IC as well.

-STOP loss = -150%

Dead man switch enabled.

Triple witching shut off enabled.

Bid/Ask spread waterfall settings:  (per v5)

Level,  B/A threshold, target price for exit

1, 0.31, 100%

2, 0.71, 90%

3, 1.01, 0.75(not %!!)

4, 2.5,  0.63 (not %!!)

5, 4.0,  0.57 (not %!!)

6, 5.0,  0.55 (not %!!)

Hedging in original monitor:

Turned on, for CS it opens an opposite CS.  

Mean reversion is there but I have never used it so the IC has no hedge.

Settings:

IMPORTANT - How to use this bot (My version-strategy):  

For this bot to work well you must refresh the tickers weekly or more frequently.  So if you have zero positions after market hours you can swap all 10, if you have positions just subtract those from the 10 max.  The reason is similar to the cherry picker bot if you don't refresh the tickers with high IVR tickers you will barely open any positions.

My strategy for picking tickers:

• I first sort the OA screener page for high IVR I just click on the column header.
• I look thru the list of anything above 35 IVR the higher the better. - best premium on the STO
• I remove any tickers below 35$ in value - low stock prices are too volatile. 
• I remove any tickers that I know have very low liquidity/OI. 
• Now that I have a short list I try to pick as many as possible from different industries just to try to create a mix. 
• 1-2 times per week.  You can run the tickers thru the run test button too but that is a lot more work and you cannot do that outside of trading hours you will get erroneous data.
• Sometimes when IVR for the whole ticker list goes low don't be surprised when you cannot find any tickers to match the criteria.  On those weeks you can try tickers in the 30-35 IVR range just to see if you get lucky and get an entry.  Do not lower your IVR check in the bot that has proven not to be a good change.  In a market low IVR environment this bot will go dormant so work on other bots when this happens.  In a low IVR environment look for BTO strategies.
• I do not run VIX, VXX, SQQQ, TQQQ, SPXS, SPXL on this bot in general they are not normal tickers.  They may work they may not.  SQQQ, TQQQ, SPXS, SPXL are 3x type ETFs so they are meant to move much faster than the underling SPX/QQQ.  For those you would need to modify the bot to look shorter term trend changes.  Also they do not have a lot of liquidity so the bid/ask spread will be very large.  Because of these issues I don't think any of these would do well in this bot.  I have not seen any bot do well with those 3x type tickers.  Most experienced bot builders that use TQQQ/SQQQ, SPXS/SPXL use them as a hedge position when closing a losing trade, only.  

This may seem like a bit of work but it only takes maybe 15 mins twice a week the way I do it.  I do both bots at the same time now to be able to run 20 high IVR tickers most trading days.  The bots normally have 6 positions or less most of the time around 2-3 positions.  See the capital at risk curves below.

Performance since Nov 2022:  NOTE I only started changing the tickers regularly in Jan.  I only started doing it weekly in Feb.  I would say 85% win rate, 44% return over that time frame is pretty decent for a live bot.

Notice the draw downs are small.

NOTE: None of the trades below on both bots had any manual interventions, zero.  No rolls either.  The strategy is to get out early.  100% bot other than the ticker refresh.

Performance #2: So mid march I wanted to see if I started a fresh live bot with the more frequent ticker changes plus I wanted to be able to run more tickers than 10.  6% gain since March 17th with live trading is not too bad and 100% win rate.