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Continuous Set in Option Builder

Overview

The Continuous Set is a sophisticated feature in SpeedBot's Option Builder that improves the current indicator set capabilities. Unlike traditional execution, which depends on particular settings like Entry Time, Exit Time, No Entry After, and Days to Run, the Continuous Set allows for execution during the entire trading session on all active days.
overview

It provides additional control at the leg level with sub-features like:
1. Minimum DTE
2. Maximum DTE
3. Rollover Days

This feature is particularly useful for traders looking to maintain seamless execution and automate trading based on expiry and rollover conditions.


Core Features

1. Minimum DTE (Days to Expiry)

  • Purpose: Filters contracts based on the minimum remaining days to expiry.
  • Functionality: Ensures that trades are executed only on contracts that are at least a certain number of days away from expiration.
    min

    Example:

  • Minimum DTE = 2
    If today is Wednesday, contracts expiring on or after Friday will be considered.

  • Benefit: Helps avoid near-expiry contracts, reducing risks like high theta decay or gamma volatility.


min

2. Maximum DTE (Days to Expiry)

  • Purpose: Filters contracts based on the maximum remaining days to expiry.
  • Functionality: Limits trades to contracts that are close to expiry.
    max

    Example:

  • Maximum DTE = 2
    If today is Wednesday, contracts expiring by the upcoming Friday will be considered

  • Benefit: Focuses on near-expiry opportunities, which can be useful for short-term option strategies.
    max

3. Rollover Days

  • Purpose: Allows seamless transition of positions to the next contract with a later expiry.
  • Functionality:
  • Closes an existing position a set number of days before expiry and simultaneously opens a new position in the next expiry contract.
  • Input: Integer (Days before expiry) and specific Time for rollover.
    rollover

    Example:

  • Rollover= 2 Days at 15:15
    If a contract expires on Friday, the rollover occurs on Wednesday at 15:15. The system will exit the current position and enter a trade for the next Friday's expiry.

  • Benefit: Ensures smooth position management across expiry cycles.
    rollover

Additional Notes

  1. Continuous Trading: To trade continuously throughout the day, use the Re-Entry and Re-Execute functionalities to ensure uninterrupted trading.
  2. Rollover Entry Conditions: If no contract is available for the next expiry date, no rollover trade will occur.
  3. Future as Underlying with Rollover: For rollover with futures as the underlying asset, the system will continue checking indicator conditions on the upcoming expiry contract until its expiration.
  4. Square off all legs with ReEntry/ReExecution in Continuous Set: Re-entry and re-execution settings will be ignored in case of Square Off All Legs setting is activated.

When to Use the Continuous Set?

  • For indicator strategies requiring non-stop execution across trading sessions.
  • To manage expiry risks using Minimum/Maximum DTE filters.
  • To automate position rollovers seamlessly for option contracts.