Automated Options Trading #5: "Picking Up Pennies in Front of a Steamroller"

[@ksoonsoon]

Another great training video. The process of troubleshooting many different questionable situation’s sure has a lot of value. Thanks

[@OptionAlpha]

Glad it was helpful!

[@dondifusco6221]

Think that referenced community comment may have come from me when I noted that the trade cost me more to get in/out of, than payoff from the "win". I did adjust one of the POSITION CRITERIA: EV per contract to be greater than $7 so that it covered broker commissions

[@OptionAlpha]

Yep thanks so much for pointing it out! And EV adjusting higher too would help compensate as well - good idea!

[@michaelruderman6544]

Would it also make sense to put a filter for min reward/risk instead of the fixed priced to be used more broadly outside of just 50 cent spreads?

[@OptionAlpha]

Funny you mention this because I did wake up today thinking the same looking at positions. That maybe we might also test a R/R filter to make sure we aren't taking in $8 but risking $500 or something so off. Great thought!

[@leedunkelberger9768]

I can not say I did not see some thing like this happening ... just a guess though .. we are just getting bait lol vs a big fish we can eat or make a few meals of " )

[@justchilling_.]

👍