About this template
After reviewing the RSI signals book and running some backtests. I developed a bot to run a backtest that I thought was worth paper trading and maybe eventually real money trading. As the name implies it looks for RSI(7) <=35. That is a fairly common signal. When it finds that signal it sells a put spread 75 delta short and long 25 delta. After 25 days it closes the spread. The backtest that I ran was on MCD, AAPL, WMT. PEP, JPM, DIS, PXD, UNH, and V. A really well balanced mix, or so I think. Right now this bot is not designed for small accounts. I suggest giving this bot 20K right now. You could tighten the spreads on this bot or build a dynamic spread sizing automation. When I get more time I will try and build something. For now this is only paper trading and as you can see from the backtest this year has been unkind to the bot, but not devastating. The backtest was 2% account size per trade so a total of 18% at risk at one time, which the max draw down was 18.84%, so it looks like at one point all the positions lost at the same time. This has a sharp ratio of .987( which is very much in the realm of what I consider tradable). I also backtested the tickers over the 200MA or SPY over the 200MA, neither had as good of returns, but part of that was because after the crash of covid and 2018 Christmas massacre, the markets just went straight up and so the bot did not recover as fast. SPY above 200 is the second backtest. They are really close to max drawdown and sharp, so if you wanted a little perceived safety an SPY > 200MA filter could easily be added. One other problem with this exact bot is that deeper ITM puts tend to have wider bid/ask. I did some filtering, but it might cause a problem in live trading.
I am looking to build a short bot, but the problem is that there are not many signals that trigger a good short and those signals are so rare, that you might get 3 trades over 9 tickers in 8 years.