Link: https://app.optionsautotrader.com/create-auto-trader?strategy=0DTE-Meneldor
This guide provides a step-by-step walkthrough on using the 0DTE Meneldor Bot, a strategy designed for small accounts that helps avoid the Pattern Day Trader (PDT) rule. You'll learn how the bot works, including its risk management approach, trade setup, and timing. It also covers important settings such as strike selection, trade duration, and how to test the bot on paper before using real money. This bot is ideal for those seeking fast, low-risk trades with tight spreads, offering a potential way to profit without the risk of PDT restrictions.
Step 1: Understand the 0DTE Meneldor Trade
This bot is designed for 0DTE (zero days to expiration) trades, making it ideal for smaller accounts that want to avoid the Pattern Day Trader (PDT) rule. It has a historical win rate of 84% with an average win of $70 and an average loss of $304.
Step 2: Set Up the Trade
The bot works by picking a $20 distance from the stock price in the afternoon session of the trading day.
It sets a total spread of $40, giving the stock room to move.
If the stock stays within this $40 range, you will make a profit when the trade expires. If the stock closes outside the range, you will incur a loss.
Step 3: Check the Backtest Results
While backtest data is available, it does not guarantee future performance. Be sure to do your own research before proceeding.
Step 4: Trade Settings
The bot operates in the SPX market.
Strike prices are set by selecting a $20 distance from the stock price, with a $5 offset between the strikes.
It trades every day at 2 p.m. Eastern Standard Time (1 p.m. Central).
Step 5: No Take Profit or Stop Loss
The trade is left to expire without a take profit or stop loss.
This is done to avoid triggering the PDT rule, as the trade is considered to have expired rather than closed.
Step 6: Manage the Trade with Small Losses
The spread width is kept tight at $5 to limit potential losses.
A typical trade size is around $500 per trade.
Step 7: Start Using the Bot
To use the 0DTE Meneldor Bot, click on “Start Using This Bot.”
You can also view the detailed rules by clicking “Go Back” a few times.
Step 8: Paper Test the Bot
Before using real money, it’s recommended to test the bot on paper to ensure you fully understand how it works and how it fits your trading strategy.
Step 9: Trade with Confidence
Once you're ready, set up your trade with the desired amount of money, and let the bot automatically handle it according to the strategy.
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.