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Question on Optiontrader algorithm
2 replies, 683 viewings
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OmniTrader Upgrade Forums
OptionTrader
Question on Optiontrader algorithm
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Last Activity 12/1/2022 8:14 AM 2 replies, 683 viewings |
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LSJ Legend  Posts: 515 Joined: 8/17/2006 Location: Citrus Springs, FL  User Profile |
Running sim trades does not subject the trade to the possibility of assignment (correct me if I'm wrong) and allows stops to work where you set them. Is there any information on how Optiontrader thinks? Ed says that IV, etc are all considered but is there more information on the workings? [Edited by LSJ on 1/4/2021 10:24 AM] | ||
| Barry Cohen Sage     Posts: 6338 Joined: 1/19/2004 User Profile |
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| LSJ Legend Posts: 515 Joined: 8/17/2006 Location: Citrus Springs, FL User Profile |
As I look at optionfinder results I am wondering in some cases why certain trades have been selected. I realize there is a criteria for R:R, $Gain, etc. As I tinker with optionfinder I am answering my own questions. For example, one of the choices Optionfinder has found with Swing Credit Spread is a $2000 wide spread with a short put more than 10 points ITM and 5 days to expiration. That does not make it to my "oh hell yeh" level. I see I get trades much more to my liking clamping it down tighter with with Max Margin and Max Risk. That same Swing Credit Spread is now more reasonable but it is still selling a deep ITM put. I will fix that with the search space criteria. I'm guessing N wanted to leave Optionfinder very flexible but in many cases search settings, search space, max margin and max risk need to be used to suit. Thanks for helping me answer my own question. <:) |
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