UT Bot Option Selling Signals with RSI, ADX, and Candle Spike Filtering

Summary

This script generates directional signals using a UT Bot ATR trailing stop: a close crossing above the stop triggers a put-selling signal, while a cross below triggers a call-selling signal. RSI ranges differ by signal, and ADX must exceed a threshold. A candle-range filter blocks entries when the current high-to-low range is more than a multiple of ATR, aiming to avoid signals during unusually large bars. Trading is limited to the stated daytime window, with positions closed outside it.

The script represents the put and call sells as long and short strategy positions on the chart, respectively, so the backtest mechanics do not model actual option contracts, premiums, or payoff profiles. It includes indicator settings and an intraday exit rule but gives no reported performance results or risk controls specific to option writing. The displayed default UT Bot parameters may also differ from the brief accompanying description, which mentions distinct settings for the two signal types.

Key ideas

• UT Bot trailing-stop crossovers provide the directional entry signals.
• RSI ranges and a minimum ADX level filter both signal types.
• A candle-range-to-ATR test blocks entries during large price spikes.
• The strategy closes simulated positions after its specified daytime trading window.
• The script does not represent actual option premiums or option payoff mechanics.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.