Link: https://app.optionsautotrader.com/create-auto-trader?strategy=34-Calendar
Discover the 3-4 Calendar Bot: This guide walks you through the essentials of using the 3-4 Calendar Bot, a tool for automating short-dated calendar spreads. Learn about its trade rules, timing strategies, risk management, and profit targets. Perfect for Options Auto Trader members looking to optimize their bullish options trading!
Step 1: Introduction to the 3-4 Calendar Bot
The 3-4 Calendar Bot is designed for automating short-dated calendar spreads.
It’s particularly effective as a bullish options strategy with a high win rate.
Ensure to test this bot on a paper account before using real money, as past performance does not guarantee future results.
Step 2: Accessing the Backtest Data
Review the bot’s backtest data, which highlights a consistent strategy with a 91% win rate.
Metrics include:
Average win: ~$100
Average loss: ~$400
Average trade duration: ~1 day
Step 3: Understanding the Trade Rules
Click “Start Using This Bot” to view and understand the trade rules.
The bot performs trades on SPX with the following parameters:
Enter an at-the-money (ATM) or 50 delta strike price for the 3-day-to-expiration (DTE) put.
Create a calendar spread by buying the same strike price.
Step 4: Timing the Trades
Execute trades only on Mondays and Fridays.
Avoid other days as expiration dates may fall on weekends, causing issues.
Step 5: Setting Profit Targets and Managing Risk
The bot aims for a 50% take-profit target.
Decide the amount of money to allocate to the bot before starting trades.
Step 6: Monitoring and Evaluating the Trade
The bot benefits from a bullish market movement, making money when the price stays stable or increases.
Be mindful of sudden market dips, which can negatively impact the trade.
Step 7: Final Notes
The bot’s high win rate is partly due to its structured trade timing (Monday-Friday).
Use the 3-4 Calendar Bot to automate trades effectively and capitalize on short-term bullish trends.
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.