Short Strangle Trading Bot
Trading Bot designed for scalping 0DTE SPX short strangles on TastyTrade
Problem Statement
An options trader based on Germany wanted a trading system designed for a custom intraday options scalping strategy that allowed for quick execution and high frequency ordering. Easy triggering of entry/exit, modification of ordering strategy and monitoring of positions was required.
Challenges
- Reducing latency in order execution, especially considering it is a multi-leg options strategy and slippage might be high
- User-friendly interface design that is not only easy-to-use but also accommodates a numerous features and modifiable parameters
- Lack of sufficient paper trading features at the broker's end that made testing difficult
Solution
Summary
I developed a web application that included a dashboard which minimized the technical difficulties of high-frequency scalping. It made it easier to track real-time prices, provide custom strategy inputs, track order statuses and manage the position.
The application was designed to connect to TastyTrade platform and run locally without requiring deployment on an external server.
Key Features
- Real-time multi-leg strategy price monitoring
- Real-time option chain streaming with easy strike selection
- Order prices based on combined strategy price instead of individual contract prices
- Real-time bid-ask spread and slippage monitoring
- Custom strategy inputs with option to automatically or manually exit positions
- Stop Loss Trailing with customizable trail frequency
- Real-time graphical view of position and P&L relative to TP and SL
- Downloadable trades history logs that is useful for analysis and strategy optimization
Technologies Used
- React/Nextjs with typescript and tailwindcss for frontend
- Python FastAPI backend
- Websockets for real-time data streaming
- TastyTrade API
Strategy Management Dashboard
Automated Strategy Process Flow
Downloadable Trades History
Results & Impact
Real-time price latency
Order cancellation and re-ordering frequency
Have a similar challenge?
Let's discuss how we can develop solutions for your specific use case.