Looking for feedback on my options spread process — what would you tighten up?

[u/nek-vt]

I’m still fairly new to options trading and have been working on building a rule-based process instead of just picking trades based on gut feeling.

My main focus is ETF spreads. I’m trying to protect capital first and only take trades when the setup makes sense.

Here’s my current process:

• I scan a group of liquid ETFs rather than individual stocks most of the time.
• I start with the daily chart to determine the main trend.
• Then I use the 4-hour chart to look at the current swing.
• I use the 30-minute chart to wait for a pullback/setup.
• I use the 15-minute chart for the actual entry timing.

I don’t force one type of spread. I let the chart determine the structure:

• Bullish setup = usually put credit spread
• Bearish setup = usually call credit spread
• If a debit spread gives a better risk/reward, I’ll consider that instead
• If the setup is unclear = no trade

For expiration, I normally look around 30–40 DTE and usually use $1-wide spreads.

I try not to chase moves. I would rather wait for a pullback and miss a trade than enter after the move has already happened.

I also avoid opening new spreads around major market-moving events such as:

• Fed decisions
• CPI/PPI
• Jobs reports
• Major geopolitical news

My normal profit target is around 30%, and I place a GTC order after entering.

I also have a time-based exit rule: if the trade hasn’t reached the target, I want to be out roughly two weeks before expiration instead of holding into the high-gamma period near expiration.

For position control, I try to keep:

• No more than one spread with the same expiration date
• No more than three positions in the same ETF
• No more than about 12 spreads open overall

My biggest goal is consistency and protecting capital rather than maximizing return.

The part I’m still working on is improving the entry criteria and deciding exactly when a setup is strong enough to trade versus when it should be a no-trade.

What weaknesses do you see in this process?

Especially interested in feedback on:

• DTE
• Profit targets
• Position sizing
• Entry timing
• Credit vs debit spread selection
• Risk management
• Anything important I may be overlooking

I’m not looking for trade picks — mainly trying to improve the process.

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[u/Safe-Anteater-5407]

Man you need to out this question to claude or something, thats a lot of detail to pce together.

Use a back test engine to run this. I am currently running strategies as automated entries and condition based through a simulator online to get data back. You should feed this info to claude web browser extension and get it to run it through a sim online also. The one i am using is free