Sequential 45 DTE Iron Butterfly

Strategy Overview

• Continuously enter iron butterfly positions in a basket of ticker symbols.
• Use decision logic to prevent overlapping positions in the same ticker symbol.
• Add opportunity filters to check for liquidity, probability of profit, rate of return, and probability of max loss before opening new trades.
• Build a monitor automation with multiple exits plus a "Switch" for exiting if the long strikes are breached.
• Leverage custom inputs throughout the bot template for flexibility.

Create the Bot

We discuss the bot's global settings, allocation, daily and total position limits, and show you how to connect the bot to an account.

Add a Scanner Automation

Follow along as we build a scanner automation. We show you how to create a watchlist of tickers and include a decision recipe to ensure the bot does not overlap positions. We also add multiple pre-entry criteria for the bot to evaluate before sending an order to the broker with SmartPricing technology.

The bot automatically filters opportunities for bid-ask spread, rate of return, probability of profit, and max loss inside the automation.

Plus, learn how to use custom inputs to make your automations more efficient.

We end the automation with an open position action that lets you customize the iron butterfly with specific expiration and option leg attributes.

Add a Monitor Automation

Next, we add a monitor automation to manage open positions. Learn how to add a position loop action to manage all your positions with the same decision logic.

This bot uses multiple criteria to exit trades, including defined profit targets with SmartStops, and an expiration filter to avoid assignment.

We also show you how to use a switch to exit challenged positions for ultimate flexibility.

Save and Share the Bot Template

Finally, we saved the bot as a template and shared it in the Community so you can clone the bot and add it to your portfolio instantly.

Be sure to heck out Podcast 211 for more Iron Butterfly tips and backtesting results!