About this template
This bot is retired from paper trading and is no longer being kept up to date.
Welcome to 'The Transitory Nibbler', a conceptual automated options trading bot currently in the research phase. This bot aims to capitalize on market volatility typically seen around Federal Open Market Committee (FOMC) and Consumer Price Index (CPI) releases. Our objective is to achieve small, consistent profits by taking advantage of these events. We're looking to refine this strategy with community input, so we encourage feedback and testing.
The bot's operation is simple at its core. Starting seven days before an FOMC or CPI event, it initiates one Iron Condor position each day until two days before the event. This adds up to six positions in total, each with its unique profit target. The profit target is initially set to 40% for the position seven days out and reduces by 5% each day, down to 20% for the position two days out.
For each position, the bot aims to set an Iron Condor around the 30 delta, attempting to earn a reasonable credit while maintaining a high Probability of Profit (POP). The focus is on creating a balance between risk and reward, skewing towards maintaining a high win rate through regular, small profits.
In its current state, The Transitory Nibbler uses a trailing stop mechanism to potentially capture more premium during favourable market swings. However, this approach may be subject to change based on further testing and might switch to more traditional profit-taking methods if they prove to be more effective.
To manage risk, a stop-loss is set at 150% of the received credit. Additional exit criteria have been configured to ensure positions close one day after the event, regardless of profit or loss.
This concept, while simple, could lead to something unique and effective with community feedback and further testing. Your insights, suggestions, and critiques are highly valued in this developmental phase. Let's collaborate to refine and evolve 'The Transitory Nibbler' into a more robust, reliable bot that can navigate the transient waves of market volatility.
