SchwabAutoTrading (SAT)

We automatically trade options via some simple algorithms and it's only applicable for Charles Schwab Accounts. The author is Lin with MathPhdTrading and she explains her algorithms more in details in her Youtube Channel: https://youtube.com/@mathphdtrading-sv2024?si=3MZf12bxZ4E5TL3x.

Brief Description of the Algorithms

First we only sell puts and/or calls since I am a big believer of Theta trading. So if you are an option buyers, you can stop here.

How to STO a new put/call?

The new put trade has the expiration date 4 weeks out, the delta between [-0.24, -0.16] and the premium > 0.01 x strike price;

Winning Trade?

If an existing trade has a gain > 50% and abs(delta) <= 0.14. We close this existing trade and open a new trade based on above.

Losing Trade?

if an existing trade has the external value < 0.005 x strike price and expires in two weeks. We close this existing trade, and STO a new trade that has at least 2% lower strike price and $0.30 higher premium.

Installation

Before you follow the instruction below, you need to apply for a developer account from Schwab and then follow the instruction from Tyler Bowers's github code. Tyler Bower is the author of schwabdev, the Schwab API. The code link is: https://github.com/tylerebowers/Schwab-API-Python. After you get your connection to Schwab account working, you should also put your APP key and APP secret to the Config class in configs/config.py.

Note: Always work under SchwabAutoTrading/, or the same level as README.md. Use the package manager pip to install.

You need to be in virtual environment to use pip. The following command creates a virtual environment myenv in the current directory. You only run this when it is the first time to create a virtual environment.

python3 -m venv myenv

And then activate it:

source myenv/bin/activate

You may wish to deactivate it later by simply typing

deactivate

in your shell. When it is your first time to create a virtual environment, you need to install the necessary libraries before running the main file, you run:

pip3 install -r requirements.txt

Last, don't forget to add your python path in your .bashrc.

Code Structure

Except test/ and data/, there are main.py plus 3 folders: configs, options and trading_algorithms. configs: stores all the constants and enum classes. This is where you should change your app key, app secret and account numbers. If you have different likings of expiration date and delta, you can change your STO_TRADING_SETTINGS. Ideally, after you modify all the necessary variables in configs.py, you can just run python3 main.py every day to trade.

options: composed of basic classes like stocks, options and option_chains.

trading: it deals with trading current positions of all accounts in trade_options.py; and it scan through a list of stocks and trade it if there are significant price changes.

main.py: Run this every day to trade!!!!

Note

If you have any questions about the code, please email me at MathPhdTrading@gmail.com.

fpena06 / SchwabAutoTrading