About this template
V.3 - UPDATE (Current)
- Added a more robust RSI check where RSI needs to be above yesterday's RSI to go long or RSI needs to be lower than yesterday's RSI to go short.
V.2 - UPDATE
I've been running this version live and it seems to perform better than V.1. Here are my updates:
- Changed 14 SMA to 5 SMA (better for shorter-term trends)
- Added RSI check (avoids trend reversals)
- Added more inputs (for customization)
- Updated exit options (from 2 hours before to 1 day before expiration)
- Still has 25% profit target
Some results from the past several days when I compare V.2 to other iterations I'm testing:
V.1 - INTRODUCTION
With the recent bullish trend change in the markets, I decided to make a (very) simple credit spread bot. This bot aims to open a credit spread on a series of tickers (SPY, QQQ, DIA, IWM, and GLD) based on the ticker's price relative to its 14 SMA value:
- If price is above its 14 SMA, it will open a short put spread (aka put credit spread or bull put spread)
- If price is below its 14 SMA, it will open a short call spread (aka call credit spread or bear call spread)
Other parameters of these trades include:
- At least 3 DTE
- Short legs are 30 deltas (~70% chance of profit)
- Spread width is at least $2 wide
- Minimum bid price is $0.30
- The default exit options are 25% of the credit received
- No stop loss
- Exit 1 day before expiration
- Only opens one trade per symbol per day
- Only allows one open position per symbol per day
- Default is to wait at least one day before exit
- After exit, it will open another spread with that symbol
While the profits will be small, my goal was to make small profits each day. The risk per trade is small as well (~$200 per trade) so it should be a nice fit for small accounts. I know it's a small dataset, but here are my results so far with this bot:
