Video summary

XTremeAutoTrader Options and Inverted Options Trading 2015 10 06 15 46 30

Main summary

Key takeaways

Technology

Technological concepts / product features demonstrated (Extreme AutoTrader)

Options “surrogates” for any regular strategy

Extreme AutoTrader can take an existing strategy and replace trading the underlying symbol with trading options on that symbol.

  • When the underlying strategy would go long, Extreme AutoTrader buys call options.
  • When the underlying strategy would go short, Extreme AutoTrader buys put options.

Inverted options trading mode

The demo also shows an inversion feature that mirrors the option side:

  • Instead of long → calls, it can be configured to do long → puts
  • And short → calls (i.e., the option direction is flipped relative to the base strategy)

Workflow / setup guidance shown

Enable analysis indicators

In the workspace, the user:

  1. Right-clicks the chart
  2. Selects “format analysis”
  3. Turns Extreme AutoTrader 100 indicator status ON

Accept disclaimer gating

A disclaimer dialog appears and must be accepted before proceeding.

Enter and validate symbols

In the Extreme AutoTrader console:

  • The symbol column requires entering the ticker (e.g., Citigroup) in multiple rows
  • The system verifies valid tradable symbols

Create and keep a helper chart

  • A “helper chart” is created
  • The video emphasizes not deleting it (it can be minimized)

Configure global default settings

The demo sets:

  • Bar type for all symbols to 10 seconds (to speed trading action)
  • A default strategy designed for rapid position changes

Detect and resolve duplicate row conflicts

If two rows are configured identically (same symbol + same bar type):

  • The UI shows a blinking/red background to flag duplication/conflict
  • The solution is to differentiate rows

Options configuration details shown

Select surrogate options (weekly ATM)

For each row, the demo selects:

  • “stock options weekly”
  • Extreme AutoTrader calculates at-the-money (ATM) options for the nearest expiration date
  • It can be configured to choose:
    • 0 strikes (ATM), or
    • ± strikes (the fields update accordingly)

Enable invert entries (row-based)

  • The second row enables invert entries, producing opposite option behavior compared to the first row.

UI indicators reflecting configuration

The interface shows:

  • A surrogate symbol column (indicating the options contract logic like weekly options and the ATM/0-strike selection logic)
  • An invert entries column (confirming which row is inverted)
  • “Data loaded” vs “data loading” behavior is highlighted, including a special case when rows reuse the same symbol/bar type

Chart/strategy creation and connection safety

TradeStation reliability step

To create strategies/charts reliably, the demo instructs:

  • Taking TradeStation offline first
  • The platform shows live connections turning offline (trading sim and data server diagnostics go red/offline)

Create charts per row

The video walks through creating charts/strategies for:

  • Row 1, then row 2
  • With the note that when successful, it returns to a safe/ready state for the next step

Sign back in / go live

After chart creation:

  • The system is brought back online
  • The strategy settings field becomes “locked”, indicating readiness to trade

Trading behavior demonstration (core “analysis” outcome)

Opposite positions every 10 seconds

The two rows are set so positions move in opposite directions, causing rapid flipping:

  • Every 10-second interval flips the sign/position (positive ↔ negative)

Options selection reflects configuration

  • Row 1 (non-inverted):
    • Long-side = purchasing calls
    • Short-side = purchasing puts
  • Row 2 (inverted):
    • Opposite happens:
      • When Row 1 uses calls, Row 2 uses puts
      • When Row 1 uses puts, Row 2 uses calls

The demo explicitly notes:

  • The inversion/mirroring behavior
  • That the alternation continues as the strategy changes direction

Main speaker / source

  • Dave Cohn (stated at the beginning: “Hi this is Dave Cohn…”)

Original video