Automated Options Trading #8: Performance of individual stocks vs…



https://optionalpha.com – I’m back to analyze trades that come through my experimental portfolio after more than 841 trades, …

11 thoughts on “Automated Options Trading #8: Performance of individual stocks vs…”

  1. Hi, I just found out about OA and I am really liking what I am seeing so far. Not sure if this is a good place to ask this question, but what happens when you get assigned? It looks like you can have hundreds of positions open with this bot at one time. If the market goes badly against you, you could could get lots of assignments. How would you deal with that?

  2. I'm eagerly awaiting any research and updates you do for EV Kirk, thanks for another one. I think trading pure EV is definitely the way to go but just trying to figure out the best way to do that in OA.
    Is there anything in Dev that will enable a EV bot to scan all tickers in TI and select the best ones based on Alpha? That is my ideal but obviously can't do that atm. Thanks!

  3. Keep these coming Kirk. I've been following-along beside you since the beginning with a large basket of ETFs and have only-recently added equities. On the ETF side, XLK and EFA have been doing surprisingly-well besides the usual suspects, and on the equities side, MSFT, JPM and DOW have been my assassins, although I did just get assigned today with JPM. Enjoying these updates and looking forward to a viable EV strategy for future trading. Thanks again!

  4. Very inspiring series Kirk. My question though is going forward would it be possible to program the bots to roll the positions that are a certain percentage in loss to potentially lessen the loss?

  5. Did not hurt that IV ticked up .. I may be coming to the dark side of EV how cool we can do this " ) hmm do not like thinking about rebuilding out all my bots lol one step at a time " )

  6. Another GREAT video !!!! I've been looking forward to this! Awesome series, please keep them coming! Thank you Kirk!
    Waleed

  7. Thanks for the update, Kirk. I am really enjoying using the OA platform. There are sooo many things you can do with bots & the community is great at sharing ideas & results. After paper trading for a while I have recently cloned a few of my bots for live trading & completely agree that not having to agonize over every trade is a great benefit. And the Trade Ideas function is simply awesome. Many thanks to you & all the OA Team for all your hard work.

  8. I noticed the underlying stock ticker symbols on the graph comprise a really small set. Any particular reason why/how you chose this set and why you didn't decide just to take every single trade idea that has a positive EV regardless of the ticker symbol?

  9. Loved this video. Really enjoy the ability to compartmentalize different factors like stock type and the trade type. I look forward to see this running live. Based on the current results, would you be inclined to strip off all the ETF stocks?

  10. Thanks for the update on the EV Bot! I built my own EV bots this week, and I'm paper trading them with one modification. I set Max Loss to $200 to manage risk for my small account. I'm testing 27 tickers. Wahoo! Can't wait to see what happens.

  11. Awesome update. I've been really excited to see how this experiment is going and have been really hoping for an update!

    Two questions for you:

    1) Have you increased the number of DTE that your Pure EV bots are using to select which options to go with? I guess I was confused when you referred to monthly expirations at 1:32 in the video.

    2) How did your Iron Condors do the day before, day of, and a couple days after the Fed Meeting? I wonder if leaving Short Put Spreads and Short Call Spreads on during that time is fine because if the market moves one way, you kind of have both directions covered. However, with Iron Condors, any directional move would cause a large portion of them to become unprofitable.

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