This video demonstrates how to create a simple bot that only enters an iron condor if the IV rank is above a certain level.
Create a New Bot
Create a new bot, give it a name, and set allocation and position limits in the global bot settings.
The bot will have no activity, positions, or automations. As a safeguard, the bot is turned off by default, and you must manually turn it on when you are ready.
Add a Scanner Automation (1:20)
Scanner automations tell the bot what market criteria to look for before entering a new position.
To add a new scanner automation, select the “+” symbol in the Scanners section of the Automations tab.
When adding an automation, you have the option to reuse an automation, make a copy and modify an existing automation, or create a new automation.
A new automation will be made for this example.
Add a Decision Action to the Automation Editor (2:00)
Select “New Automation” to access the automation editor.
You can name the automation and create a scanner with specific criteria for the bot. The new scanner can also be added to your automations library, where it can be edited, copied, and reused in the future.
Select the “+” icon to access the decision action recipes. Decision actions tell the bot what criteria to look for to find opportunities.
There are multiple criteria to choose from when using decision actions. This bot will use a recipe that looks for high IV rank.
The fields are variable, so you can define the parameters to fit your trading strategy.
You can also use custom inputs for certain fields, such as the ticker symbol and IV rank value.
Custom inputs provide you flexibility if the automation is used again. The input enables you to set a variable and edit it at the automation level. You can label the input.
For example, the recipe will reference if the IV rank is above 70. The custom input is titled “IVR Threshold.”
Select “Save” to add the decision recipe to the automation editor. The bot’s custom inputs are displayed as well.
The automation will begin with the decision action. You can add additional actions based on the outcome, such as an open position action.
Open Position Action (3:32)
You can tell the bot to open an iron condor position if the underlying security has an IV rank above 70.
To add an open position action, select the “+” icon under the “Yes” branch of the automation editor to view the list of bot actions.
Select “Open Position” to view the list of position types.
Select “Iron Condor” and customize the position’s settings.
Select “Save” to add the open position action to the automation editor.
The bot will open an iron condor if the ticker symbol’s IV rank is above 70.
You can always test the automation for multiple tickers to see the actions’ outcomes in live market conditions.
When the automation is complete, select the “X” button in the top right corner. The scanner is displayed in the Automations tab.
You can hover over the “i” icon to view the automation’s custom inputs.
You can easily add additional scanners and simply change the custom input to run the automation on different ticker symbols and/or a different IV rank threshold. This allows you to run the same strategy on a variety of securities and indicator values.
Add a Monitor Automation (5:52)
You can add a monitor automation to manage any iron condor positions the bot opens.
Select the “+” symbol in the Monitors section to create a new automation or select from a list of available automations in your library.
Because there is already a monitor automation created to manage iron condors, the automation can be reused.
The monitor automation is added to the bot and will manage all iron condor positions open inside the bot and look to take profit at 50% of the premium received.
Remember to turn the bot on when you are ready. It will scan market conditions for high IV rank and open an iron condor if the criteria is met.