The Option Alpha Podcast

223: Building a Bot for All Market Conditions: The "Hexabot" Story

Aug 1, 2022
Learn about the Hexabot, an automated trading strategy built by the Option Alpha community. They discuss the process of designing and testing the bot, determining market trends, position sizing, and allocation strategies. They also cover the importance of bid-ask spreads, open interest, and the rate of return threshold in options trading. The episode explores the value of tagging and tracking positions, managing positions based on expiration week timeframes, and different profit targets and strategies.
Ask episode
Chapters
Transcript
Episode notes
1
Introduction
00:00 • 3min
2
Building a Bot Template: Process and Approach
03:01 • 16min
3
Position Sizing and Allocation Strategy for Hexabots
18:52 • 10min
4
Building the Bot and Identifying Market Environments
29:07 • 23min
5
Determining Market Trends and Making Trading Decisions
51:47 • 32min
6
Importance of Bid-Ask Spreads and Open Interest in Trading
01:23:43 • 2min
7
Rate of Return Threshold and Liquidity Checks in Options Trading
01:25:55 • 7min
8
Entering a New Position and the Importance of Tagging
01:32:28 • 2min
9
Exploring the Hexabyte: Scanner and Monitor Automation
01:34:41 • 3min
10
Position Monitoring, Management, and Exit Criteria
01:37:45 • 4min
11
Different Profit Targets and Strategies
01:41:28 • 29min
12
Managing Positions Based on Expiration Week Timeframes
02:10:16 • 21min
13
The Importance of Tagging and Tracking Positions with a Bot
02:31:25 • 2min
14
Designing and Testing the Bot
02:33:08 • 7min