Continuing the theme of broken wing iron butterflies I present MACDaddy.
This is very similar to the “Learn to Fly” template and opens bullish or bearish positions based on MACD. For this bot MACD is set to (2,10,3). Learn to Fly is at (2,5,3).
The other difference with this bot is it opens positions every 30 min and is a bit quicker to take profit. Idea here being to churn positions and take early advantage of profits.
This is one of the only bots I’ll post where I haven’t run it live. Reason being is I anticipate with such a short expirations, as the market swings up and down it will try to open short legs that close out long legs so the order gets cancelled. If you don’t get the fills it will mess up the returns.
It does really well on paper and I hope this stimulates a couple ideas for others to develop. In the near future I’ll be extending the expirations out and changing the MACD signal so it’s not so sensitive. If I find anything worth sharing I’ll make sure to update it here.
In early June (the very bottom dip) I made a couple tweaks to the bot and you can see how it’s done since then. Like “Learn to Fly” it does very well when the market is in a trend for more than a day or two.