This is a VERY simple PCS (but don't let that fool you) that has been traded live by John Locke in his "Locke in Your Success" community since 2002 and has averaged a 24% annual return with some years having returns as high as 50% +. OF COURSE you all know the drill - "Past performance is no guarantee of future results", BUT - I backtested this in our backtester and the results are similar: https://app.optionalpha.com/backtester/results/9685116160003008928251
As mentioned this is a VERY SIMPLE - but historically effective trade. Here is the Full Rule Set as it has been traded on the RUT by John, but I have built mine to trade on the IWM (which of course is just 1/10th the size of the RUT):
Final Note - you will see in my opening automation that I have a couple of "iterations" where the trade essentially checks a farther out delta to see if it can get the minimum required amount of .25 for the spread - if it can't get it further out, it will step a little closer to the money. You could add additional steps farther and closer if you like - but these steps fit my risk reward just fine.
