Help Code Strategy Code SPX ODE profitable System

[Takata]

Please Code
30 MIN ORB on SPX
Entry is 30 in ORB that is a pulse Bars.
Pattern Set-ups between 9:30-11:30 EST.

The Pattern Setup - Pulse Bars​

• This is a 1 bar price pattern setup and is 100% mechanical.
• Looking for a bar that closes AT or NEAR the high/low of the 30-min bar.
  • Typically a close in the top/bottom 10% of the bars high/low range.
  • 

Uses a $5 wide credit spread to profit by the end of the day (0-DTE)

Bullish Setup​

• Entry on the break of setup bar high
  • Use an at the money put credit spread

• Planned exits
  • Stop loss - the risk of the option spread
    • At expiration (end of day)
  • Target choice 1 - >80% of max profit (credit received)
  • Target choice 2 - 1.5-2 x ATR of stocks price (approximately)
    • This assumes there is a directional move.

Exit at >80% max profit or expiration at end of day


This image is for SPX and illustrates the theoretical performance of the charting setup used for the SPX Income System.

1:1 r:r is used to emulate what we do with options and uses zero discretion.

The data used is 10 years of SPX 30-min charts. From Jan 2013 to Jan 2024

 

[XeoNoX]

Please Code
30 MIN ORB on SPX
Entry is 30 in ORB that is a pulse Bars.
Pattern Set-ups between 9:30-11:30 EST.

The Pattern Setup - Pulse Bars​

• This is a 1 bar price pattern setup and is 100% mechanical.
• Looking for a bar that closes AT or NEAR the high/low of the 30-min bar.
  • Typically a close in the top/bottom 10% of the bars high/low range.
  • 

Uses a $5 wide credit spread to profit by the end of the day (0-DTE)

Bullish Setup​

• Entry on the break of setup bar high
  • Use an at the money put credit spread

• Planned exits
  • Stop loss - the risk of the option spread
    • At expiration (end of day)
  • Target choice 1 - >80% of max profit (credit received)
  • Target choice 2 - 1.5-2 x ATR of stocks price (approximately)
    • This assumes there is a directional move.

Exit at >80% max profit or expiration at end of day


This image is for SPX and illustrates the theoretical performance of the charting setup used for the SPX Income System.

1:1 r:r is used to emulate what we do with options and uses zero discretion.

The data used is 10 years of SPX 30-min charts. From Jan 2013 to Jan 2024

what is it exactly you want coded? a study on on a chart?
and you need to define better what

• AT or NEAR the high/low of the 30-min bar."

what is "near" to you?
including what 30 minute bar?

 

[Takata]

what is it exactly you want coded? a study on on a chart?
and you need to define better what

what is "near" to you?
including what 30 minute bar?”Near”is top/bottom 10% of 30 min bar range.

Looking for a strategy for tos with alerts.

 

[XeoNoX]

Looking for a strategy for tos with alerts.

i understand, but im trying to figure out what you are trying to do. i asked you specifically 2 questions that i would need to know to try and help you.

 

[Drum Rocker]

I read this thread and the strategy seems interesting to me so I am joining in here to try and help clarify how the strategy works. I am a visual person so I am including a chart below. So a pulse bar is one that closes either in the top 10% of a bar range or closes in the lower 10% of the bar range. I have highlighted a bar in the picture that shows a top 10% close. So in this example, you would sell an ATM put credit spread if the high of this bar is exceeded. @Takata, what I think is missing is how is the pulse bar related to the 30 minute opening range? Does the pulse bar need to be within the 30 minute opening range to be valid? If we can clear that up I think this should be able to be coded in some way.

 

[Takata]

The 30 min bar is not related to the opening range. Thanks for the question. New pattern setups ONLY between 09:30-11:30 est. The bar can be any 30 min bar in that time.

 

[Drum Rocker]

The 30 min bar is not related to the opening range. Thanks for the question. New pattern setups ONLY between 09:30-11:30 est. The bar can be any 30 min bar in that time.

Got it, thank you. I just purchased the same strategy and posted the conversion request for the pulse bars here: https://usethinkscript.com/threads/identify-10-price-bars.19158/
Hopefully it can be coded into a study.

 

[rlohmeyer]

@Takata @Drum Rocker
Question:

These are the initial parameters you stated @Takata:
30 MIN ORB on SPX
Entry is 30 in ORB that is a pulse Bars.
Pattern Set-ups between 9:30-11:30 EST.

The second statement is confusing. You seem to be saying any 30 minute pulse bar within the period 9:30 to 11:30 can serve as a trigger for credit spread if the high is exceeded, including the initial ORB bar if it was a pulse bar. In your example, the pulse bar you noted was within the range of the initial 30 minute ORB, which itself was a pulse bar. Had there been a 10 to 10:30 bar that exceeded the ORB pulse bar that would also have initiated a credit spread. Correct?

 

[Drum Rocker]

@Takata @Drum Rocker
Question:

These are the initial parameters you stated @Takata:
30 MIN ORB on SPX
Entry is 30 in ORB that is a pulse Bars.
Pattern Set-ups between 9:30-11:30 EST.

The second statement is confusing. You seem to be saying any 30 minute pulse bar within the period 9:30 to 11:30 can serve as a trigger for credit spread if the high is exceeded, including the initial ORB bar if it was a pulse bar. In your example, the pulse bar you noted was within the range of the initial 30 minute ORB, which itself was a pulse bar. Had there been a 10 to 10:30 bar that exceeded the ORB pulse bar that would also have initiated a credit spread. Correct?

Hi @rlohmeyer, The ORB comment is irrelevant I believe. A signal is valid between 9:30 est. and 11:30 est but is required that the 30 minute bar has closed. So that would include the 30 minute bar that closed at 11:30 est. Here are the rules that I have which I think are the same as what Takata is using:

The rules:

• Use 30-min bars, NO-Indicators
• New pattern setups ONLY between 09:30-11:30 est
• The trade typically executes shortly after the setup
• $SPX.X (cash index)
• Uses a $5 wide credit spread to profit by the end of the day (0-DTE)
• The Pattern Setup - Pulse Bars: This is a 1 bar price pattern setup and is 100% mechanical. Looking for a bar that closes in the top/bottom 10% of the bars high/low range.
• Sell an ATM call/put credit spread at break of the high/low of the pulse bar.

 

[rlohmeyer]

Hi @rlohmeyer, The ORB comment is irrelevant I believe. A signal is valid between 9:30 est. and 11:30 est but is required that the 30 minute bar has closed. So that would include the 30 minute bar that closed at 11:30 est. Here are the rules that I have which I think are the same as what Takata is using:

The rules:

• Use 30-min bars, NO-Indicators
• New pattern setups ONLY between 09:30-11:30 est
• The trade typically executes shortly after the setup
• $SPX.X (cash index)
• Uses a $5 wide credit spread to profit by the end of the day (0-DTE)
• The Pattern Setup - Pulse Bars: This is a 1 bar price pattern setup and is 100% mechanical. Looking for a bar that closes in the top/bottom 10% of the bars high/low range.
• Sell an ATM call/put credit spread at break of the high/low of the pulse bar.

Thanks for the clarification. I will test with these rules. Bob

 

[Drum Rocker]

Thanks for the clarification. I will test with these rules. Bob

You're welcome, Bob. I am not experienced in back testing so I would be interested to see the results of the strategy. There is an option within the strategy to exit if 80% of the profit is reached on the spread. Since we seem to be in a never ending bull market I think I am going to try taking the 80% profit target on the call credit spreads and run the put credit spreads to end of day expiration. Thanks, Eric

 

[NCDeere]

Hey folks... New guy here. I'm wondering if anything came out of this testing... did anyone do any back testing to see how it may have worked historically?

Thanks!

 

[rlohmeyer]

I posted and image and code Here.
Bob