Automated Option Trading System Development
Budget: €250 – €750 EUR
Short term option Trading
Note: DTE = days to expiration; A, B, C, D are integer (0, 1, 2, 5 etc.)
DayLight set-up
A CALL (PUT) at the money A DTE is bought and simultaneously a CALL (PUT) at the money B DTE is sold a settable x minute after the market of the financial instrument to trade opens and both are then closed a settable y minute before the market of the financial instrument to trade closes* (if y=0, then the option is not closed).
This setup is mechanically repeated every day.
Night set-up
Differently from the DayLight set-ups, the night set-ups foresee that options are kept overnight.
A CALL (PUT) at the money C DTE is bought and a simultaneously a CALL (PUT) at the money D DTE is sold a settable x minute before the market of the financial instrument to trade closes and both are then closed a settable y minute after the market of the financial instrument to trade opens* (if y=0, then the option is not closed).
This setup is mechanically repeated every day.
Financial instruments to trade: SPX, initially.
Trading Broker: Interactive brokers
Back-testing: needed
Note: DTE = days to expiration; A, B, C, D are integer (0, 1, 2, 5 etc.)
DayLight set-up
A CALL (PUT) at the money A DTE is bought and simultaneously a CALL (PUT) at the money B DTE is sold a settable x minute after the market of the financial instrument to trade opens and both are then closed a settable y minute before the market of the financial instrument to trade closes* (if y=0, then the option is not closed).
This setup is mechanically repeated every day.
Night set-up
Differently from the DayLight set-ups, the night set-ups foresee that options are kept overnight.
A CALL (PUT) at the money C DTE is bought and a simultaneously a CALL (PUT) at the money D DTE is sold a settable x minute before the market of the financial instrument to trade closes and both are then closed a settable y minute after the market of the financial instrument to trade opens* (if y=0, then the option is not closed).
This setup is mechanically repeated every day.
Financial instruments to trade: SPX, initially.
Trading Broker: Interactive brokers
Back-testing: needed