It's been a while since I've blogged. My day job has been extremely intense, and we've been doing a lot of work on the product (including the cosmetics). Fortunately, the smoke is starting to clear on both fronts. In fact, we hope to begin beta testing with users (besides me) starting next week.
This morning, I set up two OAD's. I had AMD long, and I had MSFT either long or short.
Trade 1 - AMD one-and-done long - $29 on 3 contracts
With AMD, I was looking for a strong green one-minute candle to filter out a weak start. We definitely got that. But it was short-lived.
It gapped down eight cents from the prior close, so I'm glad I didn't setup the filter that required it to gap up. It had a nice strong opening candle, a decent move higher, but then it reversed pretty aggressively. Trading this by hand could have been one of those painful winners that turns into a loser. I don't know if I would have taken that profit in time.
The first target was hit in eight seconds, and then the one-minute candle trail got us out before things turned really ugly.
Trade 2 - MSFT one-and-done long or short - $56 on 3 contracts
With MSFT gapped down, I wasn't sure if the move would be higher or lower. So I didn't put any restriction on the gap. And I did something that I don't do very often. I set up the OAD to go either long or short, but it would only do so if the first one-minute candle was decisively in one direction or the other. So I was looking for either a green candle that closed in the upper 60% of the bar OR a red candle that closed in the lower 60% of the bar.
My targets were 10 cents, 25 cents, and a one-minute candle trail. The two targets were both hit during the 9:32 candle. The candle trail stopped us out at the very end of the 9:33 candle.
These are the final results for both trade plans:
Here are all the fills in the UI:
(The blank lines at the top of the UI are sample data that will soon be removed.) And if you're reading carefully, you'll notice that the three AMD calls were filled in two partial fills, and there is a little bug in the quantity column that makes it look like five calls in total. That, of course, will be fixed. :-)
- Two positions were opened at 9:31 within seconds of each other. This is virtually impossible to do by hand.
- Positions were filtered based on the quality of the setup, instantly and with precision.
- Option contracts were selected automatically based on the tightest spreads available.
- Profit targets were entered instantly and waiting to be hit without any manual effort.
- Direction on MSFT was flexible and determined in real-time.
- One-minute candle trail was managed automatically.
- Conflicting orders are no problem. Various exits based on option price, underlying stock price, and even time can all co-exist.
- AMD's sharp reversal was quickly handled without hesitation or stress.
- I was actually in a manual trade while these two trades took place. The manual trade was stressful, and I had to be so fast to try to set a target, all the while debating about whether to set a target or be ready for a quick exit. Other trading software is not made to allow easy adjustments as quickly as the market moves.
- This automation is a game-changer.