About this template
This sample bot template introduces a targeted iron condor strategy built specifically for small accounts of around $3k. The strategy focuses on selling neutral, out-of-the-money iron condors on a monthly basis inside a core basket of uncorrelated ETFs. Plus, we've used bot inputs to help control and customize the bot's actions to fit your particular trading style and risk tolerance, as well as a clever little "Switch" to allow the bot to make major decisions about how it can manage open positions nearing expiration.
Here's a quick overview of the core strategy that was built into this bot template for you:
1) Scan a list of 10 uncorrelated ETFs (XSP, GLD, TLT, XOP, XBI, XLP, XLU, XRT, EEM, FXI)
2) Sell up to 6 iron condors targeting monthly contracts only, at one time.
3) Uses Trade Ideas action to target positions with 70% probability of profit and less than $300 of risk.
4) Take profits quickly using Exit Options around 30% whenever possible.
Scanner Overview
The template only requires one scanner automation. This scanner loops through your bot symbols (currently set with the Uncorrelated ETFs) and looks for Trade Ideas for each symbol that meets your criteria. These checks include checking to make sure you don't have any existing positions in that symbol that are iron condors, making sure the bot has the ability to open a new position, evaluating the IVR level for each symbol, Expected Value (EV) and Alpha, and the positions probability of profit and reward/risk ratio.
Remember, the bot will be constantly filtering to find positions, which means sometimes it may not find positions that meet your requirements, and that's okay. We don't want all positions, and we should be perfectly fine using the bot to help protect your portfolio from entering trades that don't meet your entry criteria. You are always free to adjust/edit the default settings inside the automations.
Note: We've also used Position Tags to tag opened positions as 'iron condor' which might help you organize your positions if you're trading positions in the same symbols across other bots. With tags you can sort and filter positions by tag so you can see which positions were entered under what conditions or the strategy type used across multiple bots.
Monitor Overview
For this particular bot sample, we are using one monitor automation to loop through any iron condor positions inside the bot. This means you can use this monitor automation inside other bots as well that also have iron condor positions and it would only manage those iron condors. As always, this is just one of a million ways to use bots and automations but we always want to give you more ideas to spark creativity.
With this one monitor automation, we're only looking to do additional management above and beyond the 1-min Exit Options we've set for profit targets and expiration exits. If we are assuming this template will be used for small accounts, then you'll want to check the box for avoiding trading on the same day on Exit Options so you don't get flagged as a Pattern Day Trader (PDT). This decision ensures that any closing of new positions happens at least 1 day after the position was opened.
Next, we encounter a "Switch" for allowing the bot to exit an iron condor IF either short strike is challenged by the underlying symbol. What's so cool about using switches is that you can choose to turn ON or OFF entire management sections within an automation. So if you leave the switch ON the bot will exit any iron condor position that is BOTH inside 3 days from expiration AND is currently being challenged. If the switch is turned OFF, then the bot simply exits any iron condors inside however many days from expiration you use in Exit Options to help avoid holding positions through expiration.
What's Next?
These sample templates are just a starting point for bot building. Post your own modified/edited version(s) of this bot template in the comments below or publicly in the Community to help crowdsource new ideas for your fellow traders.
