Iron Condor - Risk Management

[Brody]

Hi,

Is there a way to backtest where I can control the QTY and Max Risk of a single position? I am trying to setup Iron Condors where the width between the long and short strikes is as far as possible as long as the leg width - credit <= a defined max risk value. I also only want to trade one contract, not multiple contracts. I haven't been able to find a way to do this yet. Thanks for any help!

Best,

-Brody

[OptionStack]

You can create a custom position sizing method that can account for multiple factors (risk, quantity, credit, etc) when sizing a trade.

1) Create a custom position sizing function.  This function should return the number of contracts to trade, based on various trade attributes such as max risk, max quantity, etc.

// create your custom position sizing function based on max risk / quantity
 def mySizingFunction (trade:LegCriteriaT):Double = { }

2) Set the custom position sizing function when constructing your trade:

// set the custom sizing function
strategy1.sell("PutVertical", "Enter").sizeBy.customSizingFunction(mySizingFunction)

Please see the following for more information:  Custom Position Sizing

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