OK here is my newest bot as some of you have seen me hinting at.
It is still in extended testing, but early results show some promise. This bot takes the original ideas of Sell the Vol and Sell the Vol SuperBot and stretches it out over a longer timeframe. I've only been running this one for about a month or so, but it was able to survive the massive drop from SPY 424 down to 398 and has now recovered it all.
Here's what it does:
1. Every MWF, Open 1 21-25 DTE Iron Butterfly with 20 delta long (adjustable), constantly rolling into later expirations as new positions are added
2. There are 10 profit target tiers, as positions are added up to the max possible of 10, positions will decay and profit will be measured on an overall Open P/L basis.
3. If the bot open P/L experiences a pullback of at least 2 profit target tiers for any reason, exit half of the oldest positions. I.E. 10 down to 5, 9 down to 5, 8 down to 4, etc...
4. If bot maintains profit target without a pull back at full position size and reaches profit target 10 or oldest position reaches 2 market days to expiration, close the oldest positions down to 5 open positions and start building back up again.
5. If Max loss (default -$300) is breached at any point, the bot will close the oldest positions down and leave the 4 newest positions open.
The idea is to constantly be rolling into new positions and cutting the old ones with the most decay. One bad position will not destroy the bot as the P/L is measured as a whole.
Minimum Allocation Size for full book of positions should be around $10-20,000. Still determining final Profit Target levels. $100 increments from $100-$1000 seems the most stable. These levels may need to be adjusted lower in lower IV markets.