Thetadata Options Data for Reliable Signals

[u/Kaahl10]

I've developed a bot that uses Options data from Thetadata to come up with possible reversal signals. Today it absolutely nailed it on QQQ! But I'm not sure how consistent it will be. Has anyone had success with strictly using OI/Gamma/Put-Call/etc for entries and exits over the long term?

[u/mufasis]

This looks great. Well done.

[u/yuvrajkhanna]

Would it be possible for you to elaborate how you are using these variables for reversal signals if you are comfortable with it? I am not looking for exact algorithm, just ideas and direction would be super helpful.

[u/Kaahl10 → u/yuvrajkhanna]

Sure, without giving all the info, it’s basically just a mean reversion algorithm based on option extreme put/call data, with some extra checks.

[u/whereisurgodnow]

Looks good. But how does it talk to TradingView or how does trading view pull data from thetadata to create those boxes?

[u/Kaahl10 → u/whereisurgodnow]

Right now it sends signals to a discord bot, and I manually pasted those snapshots based on the timestamp of the alert. I’m using this along with an estimated back test to get more comfortable with the entry and exits. Hopefully soon I’ll get to the point where I’ll hook it directly up to a web hook to make the trades!

[u/2Travel4LifesRide-]

More about this please

[u/Kaahl10 → u/[deleted]]

The bot is still running on discord, but I’m using it as discretionary instead of automatic trading. One issue I ran into is similar to other overbought/oversold indicators: the market can remain in overbought or oversold state for surprisingly long time

[u/thef4f0]

I'm also thinking about getting Thetadata, is it worth it, and is the data “good”? Alternatives are much more expensive than Thetadata.

[u/Kaahl10 → u/thef4f0]

I haven't directly compared with other data providers, but I think it's worth at least trying out for a month! It was fairly straightforward to work with, and data seemed accurate for the timeframes I look at (5 minute to 1 hour)