This came out of a conversation I had on Twitter with @PephStock. I plan on going into much further detail about how I use the Trade Ideas platform to facilitate my automated trading, but this is a quick brain dump I offered up this morning.
I’m using trade-ideas to automate my trades (more info here and here). They integrate with Interactive Brokers, and it’s all UI based.. no coding. I’ve never been able to trade the earnings day open by hand, but am able to get some pretty amazing fills through their platform. I also feed in custom symbol lists that I generate using my scanner (Power Earnings Gap, Earnings Day +/-10%, etc).
They have a backtesting tool that you can use to filter down your list, which I rely on heavily. You basically set a bunch of filters, then define one alert as the order trigger. The alert could be any number of things.. new high, move above 10 day resistance, etc. Here’s a comprehensive list of their alerts and filters – https://www.trade-ideas.com/ProductHelp.html
Here is a look at how you can define your trade management rules, using my Power Earnings Gap strategy as an example:
“Simulate Buy” gives me this screen:
The backtesting tool is pretty cool, the optimize tab will show all the available filters and where all your trades fall within that filter. so in the screenshot below, I can see 2 trades for the filter “Change from 50 Day SMA (%)” that resulted in losses. I can now set a maximum for that filter at 39.99 to filter out trades like that in the future.