Day trading 0DTE Condors

Discussion in 'Options' started by qlai, Feb 4, 2024.

  1. qlai

    qlai

    Last edited: Feb 4, 2024
    Quanto and dorietrading like this.
  2. I'm currently doing a backtest on it. It looks promising. I will post the results when they are complete..
     
    qlai and Quanto like this.
  3. Some results per month..
     
    Axon and Quanto like this.
  4. Some transactions..
     
    Quanto likes this.
  5. Some statistics..
     
    Quanto likes this.
  6. Quanto

    Quanto

    Interesting results, indeed.

    He trades ShortIronCondor (it has 4 legs).
    But I think a ShortStraddle (or ShortStrangle) is easier to trade (b/c this has only 2 ShortLegs and no LongLegs), and should give a better result, IMO.
    Ie. for 0DTE with such liquid options, buying the protective outer LongStrikes is IMO unnecessary when protective StopLimit order(s) get used --> saves much money, therefore also the result should become much better.

    Would be interesting to see some backtest or simulation results comparing both strategies on 0DTE.
     
    Last edited: Feb 5, 2024
  7. qlai

    qlai

    I haven’t watched the video yet, but he explicitly stated that it is not a mechanical system. It would be interesting to know what criteria he is using to open trades.
     
  8. Quanto

    Quanto

    This is from his presentation (the slides in the link in your OP):
    SPX_0DTE_BreakEven_IronCondor_Strategy.png

    Here's more info:
    https://www.sandvand.net/category/options-trading/

    And here's a 2yr old posting of him about his strategy:
     
    Last edited: Feb 5, 2024
  9. qlai

    qlai

    It’s hard to figure out, do your stats match his?
     
  10. Quanto

    Quanto

    What does he mean by "double stop losses" when he says
    "I try to never have more than 3 – 4 positions that are at risk of double stop losses" ?

    Answering myself: I think he means when both spreads of the IronCondor experience (or are in danger of) a loss (ie. both of the protective stop loss orders get hit or are in dangerof getting hit).
     
    Last edited: Feb 5, 2024
    #10     Feb 5, 2024