About this template
VERSION 4 IS POSTED IN THE COMMENTS. POSTED ON 3/8/2024.
Sharing this live spreads template which I've been trading live since 2/2/2024.
My main purpose to share it, obviously other than for anyone else who wants to run it/build on it, is for feedback and thoughts from the community.
The logic is pretty straightforward. Here's a breakdown of the bot and relevant notes:
- Bot utilizes Stoch RSI and checks for intraday open and high movements (via standard deviations) prior to entering positions.
- Positions are only 0DTE.
- Considers entry between 10:30 and 2:00 market time. Generally, my bot will have hit its 10 position limit by about 1:30 market time.
- The bot does not trade one day before, the day of, or the day after FOMC meetings or CPI releases.
- 25% profit-taking with no trailing stop (because the trailing stop function just doesn't work well).
- There is a monitor to close positions at 15% profit, which for me runs every 15 minutes.
- Only enter positions at $0.10 slippage from mid.
- Only enter positions when the entry price will be $0.20 or more.
- Trades SPY, QQQ, and XSP.
- Position size is 35% of allocation ($2,500). I don't like to use % of net liquid, but that's personal preference. I like consistent daily profits, and if the bot does incur losses, I'd rather it wipe out a portion of the built-up profits vs. a portion of the initial allocation. Adjust as desired.
- I generally incur about $12 or so in fees per trading day (Tradier). This represents roughly a 93-94% net profit margin.
So far, live, there's been 43 wins and 0 losses. I have not included a stop loss because I generally monitor my positions throughout the day. However, if you wish to truly automate, I suggest implementing a stop loss to your comfort level (I generally stick to an alpha <10%, but 300% or so against credit would be a good cushion to account for dips without exiting positions that may ultimately "win").
Feel free to check it out, and more than anything, please share any feedback you may have in improving the bot! It's not genius, and it's probably not the best safeguarded bot, but so far it's worked well. But they all do until they don't. For that reason, don't trade live unless you understand the logic & associated risks.
** the win rate is 100%, but OA states it as 89.6%. This is because some positions were closed for a net $0 (technical loss after brokerage fees). These occurred because of the faulty trailing stop function, which is the reason I ditched using it. Since disabling the trailing stop, positions have always closed for a win.
