A few technical analysis indicators, backtested each run, with a high probability of success.

Each algorithm searches the list of S&P 500 companies traded on the stock market for a given trend.

Each trend provides the probability of success, as well as Option entry and exit prices based off a backtested average.

Two additional indicators (Stochastic RSI and ADX/DMI) are calculated to validate whether the trend has a higher change of success.

If the Stochastic RSI is trending in the same direction as the script algorithm, then a trend is increasing in strength.

If the ADX/DMI is trending in the same direction as the script algorithm, then more investors are buying/selling according to the trend.

A modified version of Keltner channels is used to identify an increase in volatility.

If a symbol closes for the day above a 20-day average range, it has a high probability of continuing a trend into the next day.

After the next day, the chances of a reversal of trend is likely, but unknown.

Similar to the above Breakout trend, a modified Keltner channel is used.

If a symbol closes from a Breakout trend the next day, the chance of a reversal is likely to be very low.

This modified Breakout trend will indicate that a stock has a high probability of continuing to climb for the next few days.

When a trend is confirmed in a direction, investors will more than likely make trades according to the trend.

This algorithm catches the trend a day or two before, in an attempt to ride the trend of a stock for a longer period of time.

Entry and exit prices are only calculated for overnight holds, although the trend may continue for longer.

Golden Cross - 50 day average crosses above 200 day average

Death Cross - 50 day average crosses below 200 day average

When a Golden Cross or Death Cross forms, investors tend to buy or sell with strong sentiment toward the direction of the cross.

This algorithm catches the trend a day or two before, in an attempt to ride the trend of a stock for a longer period of time.

Entry and exit prices are only calculated for overnight holds, although the trend may continue for longer.

This algorithm catches the trend reversal of Relative Strength Index indicator in attempt to ride the directional trend of a stock.

When a trend reverses from "Oversold" a Call may be placed until the indicator reverses in the opposite direction ("Overbought").

Entry and exit prices are only calculated for overnight holds, although the trend may continue for longer.

Runs with optimal performance on systems with more than 8GB of RAM.

https://podman.io/getting-started/installation.html

or

https://docs.docker.com/get-docker/

In the project directory, type :

podman build -t breakout_options .
# For Windows
podman run -d -v %CD%:/usr/src/app -p 0.0.0.0:5000:5000 --name=app breakout_options
# For Mac or Linux
podman run -d -v ${PWD}:/usr/src/app -p 0.0.0.0:5000:5000 --name=app breakout_options

or

docker build -t breakout_options .
# For Windows
docker run -d -v %CD%:/usr/src/app -p 0.0.0.0:5000:5000 --name=app breakout_options
# For Mac or Linux
docker run -d -v ${PWD}:/usr/src/app -p 0.0.0.0:5000:5000 --name=app breakout_options

Then point your browser to http://localhost:5000!

On the first time running the script, a full stock market history is downloaded, compressed, and stored locally (<400 MB).

This first run may take about and hour to run, but is crucial for producing accurate backtesting data.

Any other time than the first run, only incremental data is downloaded when the Refresh button is clicked.

• Greed may set in! If you are making a stable profit, it may be time to sell. Slow and steady wins the race.

• Similar to greed, if you are not making profit off a trade, it may be time to sell. A loss is only a small setback, tomorrow will be better day.

• If a company is within a day or two of earnings or an ex-dividend date, it may be best to not enter a trade. Volatility can easily kill profits.

• If the price has recently increased or decreased significantly, compared to normal, due to news, the trend will likely undergo significant reversal.

• If another company in the same sector as a pick, e.g. Consumer Cyclical, has had or will have a major news event, it may cause the pick to sympathetically follow trend.

• Theta Decay, also known as "rent", decreases the profitability of a trade as the option contract nears its expiration. Profitability decreases faster each day.

• Buying expirations too close to expiration will tend to be more volatile and, therefore, more risky. Increased risk increases profitability. Increased risk also increases probability of loss.

• Check Daily chart to visually inspect trend, then check Hourly chart to pick an optimal time to purchase. The best strategy is "buy low, sell high".

• An hour after markets open and an hour before markets close will have an increase in volume and possibly volatility. It may be best to wait until volume settles for the day to make a trade.

• Predicting market direction will more than likely end in failure. Following the direction the market is already trending will more than likely end in success.

• If trading causes an emotional reaction, it may be best to not trade. If a trade causes stress or loss of sleep, it is extremely advised to sell.

• Familiarize with trading rules, such as Day Trade Violations, Good Faith Violations, and other other industry regulations. https://www.finra.org/rules-guidance/rulebooks

• All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.

• Any opinions, news, research, analyses, prices, or other information offered is provided as general market commentary, and does not constitute investment advice. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.