This guide walks you through creating an automated butterfly spread trader, covering steps like selecting strike prices, choosing call or put options, customizing the butterfly spread, setting trade entry frequency, defining exit strategies, and managing buying power allocation. You'll learn how to configure entry rules, take profit/stop loss settings, and advanced features like TradingView integration.
Go to the dashboard page.
Click on the "Create an AutoTrader" button.
Click on "Butterfly Spreads" from the options that appear. This preloads a typical butterfly spread setup.
Choose the strike price for the butterfly spread.
You can adjust this to be out of the money or at the money, depending on your preference.
For example, you can choose to be $10 out of the money or $5 in the money.
If you want a custom butterfly spread (like a 1-2-3-2 setup), adjust the settings accordingly.
The default setup is a call butterfly spread, but if you want to use puts, switch the option to puts.
Enter the number of contracts for each leg:
A positive number means you are buying the contract.
A negative number means you are selling the contract.
Example setups include 3-1-2 for the butterfly structure.
Define how often you want to enter this trade:
Once a week or multiple times a week.
Choose the days and times for entry (e.g., a specific session or time).
If you have other advanced entry rules, click on the advanced settings.
If you want to enter trades based on specific indicators, enable TradingView integration.
Set your take profit, stop loss, and early trade closure preferences.
Decide how much buying power the bot should use for trading:
This is based on how many open trades you want and the cost per trade.
For example, if each trade costs $1,000 and you want 5 trades, you need $5,000 in buying power.
After configuring the strategy, click Save and Continue.
A summary of your settings will appear.
Review the strategy and settings.
If everything looks good, click on Authorize and then Save AutoTrader.
This process automates the trading strategy for butterfly spreads with customizable settings for entry, exit, and trade management.
TERMS OF SERVICE: Please be aware that continued use of the Options Auto Trader is subject to our Terms Of Service. If you have any questions or wish to review these terms, feel free to visit the website.
