Link: https://app.optionsautotrader.com/create-auto-trader?strategy=PutSpready
In this guide, you will learn how to set up and use the Put Spready Bot. It covers key aspects such as understanding the bot's strategy, reviewing important disclaimers, setting trade parameters, testing with paper trading, and using the market crash predictor. This guide is perfect for smaller accounts interested in a 90 DTE put credit spread strategy, ideal for neutral to bullish markets. It also emphasizes the importance of thorough testing before live trading.
Step 1: Understand the Basics
The Put Spready bot is part of the strategy database and designed for smaller accounts.
It uses a 90 DTE (Days to Expiration) put credit spread, similar to the KissBot strategy.
The bot is intended for neutral to bullish markets, and its performance may not be ideal during market crashes.
Step 2: Review the Disclaimers
The creator of the bot is not a financial advisor. It is essential to conduct your own research and consult with a professional if needed.
Past backtest results show a 98% win rate, with an average win of $338 and a potential loss of $5,000. However, these results do not guarantee future performance.
Step 3: Set the Trade Parameters
The bot executes a put credit spread, selling short puts for smaller accounts.
The bot trades once a week, typically during the morning session.
Take profit is set at 25%, and early management triggers at 21%.
Step 4: Test with Paper Trading
Before using the bot with real money, it’s highly recommended to test it with paper trading to understand how it works in practice.
You can click on "start using this bot" and review the trade rules by going back a few steps. This will show you the symbol, expiration date, and how strike prices are selected.
Step 5: Set Up Your Account
Input the amount of money you want the bot to use when setting it up.
Ensure you are comfortable with the large potential loss and adjust your risk tolerance accordingly.
Step 6: Use the Market Crash Predictor
Be aware that the bot performs poorly in market crashes. It’s recommended to enable the market crash predictor to help avoid losses in such conditions.
Step 7: Monitor and Evaluate
After setting up the bot, monitor its performance and make adjustments as necessary based on how it performs in the market. Start with paper trading and gradually transition to live trading if you are comfortable.
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.