Use Our Iron Condor Weekly Options Trading Strategy With as Little as $10,000 Starting Account.

The Iron Condor Weekly Options Trading Strategy is perfect for the individual who wants a higher back-tested per trade win rate or who simply wants to collect premium on the S&P 500  Emini-Futures by selling Iron Condors. When our algorithms expect a sideways moving market condition, this system will create an Iron Condor trade. This strategy can be traded as a stand alone strategy – or as part of the S&P Crusher v2.

In this video our lead developer reviews the Iron Condor Weekly Options Trading Strategy in great detail. Trading futures & options involves substantial risk of loss and is not appropriate for all investors.

The Basics of Weekly Options Trading

Weekly options refer to options that expire on a weekly basis. The advantage of trading weekly options as it pertains to our options trading algorithms is that we will not hold any positions over the weekend.  Weekly Options have been around for over a decade now, however they began seeing more widespread use just after the great recession.  The S&P 500 Emini Futures have Options contracts on them that trade similar to the SPY ETF Weekly Options. With our Algorithmic Weekly Options Trading Strategies, we typically sell the options on Monday and hold until Friday’s expiration.

Picture of bid x ask spread for an ES Weekly Option.

Picture of an Iron Condor Weekly Options Trade  – with strike prices highlighted in yellow.

An Example of Weekly Options Trading With An Iron Condor

Our weekly options trading strategy uses an Iron Condor to place trades when our market prediction algorithms expect the market to trade within a range. Of course, these predictions are not 100% accurate – however by utilizing Iron Condors, there is some margin for error. This weekly options trading algo sells 1 Call and 1 Put Option (both out of money). In addition, it buys a deeper out of money call and put to protect us from a black swan kind of event where the market moves a tremendous amount against our Iron Condor trade.  Our best case scenario, is that the Futures close on Friday between our Short Call and Short Put.  In that case, both options expire worthless and we keep all of the premium.

Iron Condor Weekly Options Trading Strategy Highlights:

Initiates Iron Condor Trades

Instead of buying the ES futures when a ‘Buy trade’ is generated, the Iron Condor Package sells a weekly PUT & CALL option trading between 10-20 points out-of-money. In addition, it will buy a deeper out of money PUT & CALL to limit the downside loss potential.

100% Automated Options Trading System

The Iron Condor Package is fully automated through our auto-execution brokers. Receive real-time trade alerts on your phone and daily statements

> GET STARTED

Back-tested per trade win rate of 80.79%

We back-test each of our algorithms over 15 years.While back-testing an options algorithm poses different challenges, our back-testing shows that when we initiate an Iron Condor Weekly Options trade, we are profitable on that trade over 80% of the time. Refer to disclaimer CFTC RULE 4.14 (below) for limitations on back-testing.

Works Well In Sideways Markets

Iron Condor trades typically do well in sideways moving markets. This happens to be the primary weakness of our other “futures” algorithms. The data suggests that adding the Iron Condor package to the ESTY Futures package creates a robust trading system, such as the S&P Crusher.  The Iron Condor trading strategy can also be traded alone as a stand along package.

Iron Condor Weekly Options Trading Strategy Dashboard

The following data is taken from compiled back-tested Tradestation reports. 

Yearly Analysis (per $10,000 traded) 
Average % gain per year 87.17%
Average $ gain per year +$8,717
Monthly Analysis (per $10,000 traded)  
Average % gain per month +7.68%
Average $ gain per month +$768
Monthly win rate 76.00%
Trade Analysis (per $10,000 traded)  
Total Num Trades 916
Trades With > 5% Loss 84
% Trades With > 5% Loss 9.17%
Trade Win Rate 80.79%
Portfolios Which Use the Iron Condor   
S&P Crusher v2 Yes
ES/TY Futures v2 No
The Day Trader No
The Bearish Trader No
Period Analyzed
Historical period analyzed May 1, 2003 – Oct 31, 2016
Slippage & Commission Used in Analysis
Commission used in all reports (Options Trade) $20.00 per Leg of Iron Condor (all-in)
Protection used in all reports (ES) $12.50 per Leg of Iron Condor
Draw-Down (per $10,000 traded)
Worst percent draw-down (closing trade to closing trade) -53%**
Period Seen 10/31/14-11/31/15
**Estimated draw-down based on back-testing data (see disclaimer, below). Note that heavier losses than indicated are possible.
Iron Condor
Instrument traded Weekly Calls & Puts on S&P 500 Emini Futures (ES)
Type of option traded Sells OTM Call & Put, Buys deeper OTM Call & Put
Day of the week trade can be initiated Monday-Thursday
Exit criteria Holds till Fridays Expiration
Outperforms in Drifting Up & Sideways moving markets
Ability to hold overnight Yes
Ability to hold over the weekend No
Account Details
Minimum account size $10,000 (Recommended Minimum of $20,000)
Allocation One contract traded on each algorithm (1 total) per $10,000
Number of algorithms traded 1
Instrument traded ES
Trades Futures No
Trades Options Yes (Iron Condors)
Account types allowed Cash, IRA, Roth IRA
Pricing
Licenses available Yes
Licensing fee Call or Contact Us for a quote

CFTC RULE 4.41: Results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown. In other words, this package trades both the futures and the options on futures. Backtesting an options algorithm poses many challenges due to the unknown estimates for premium collected. Depending on (among other things) market volatility, the premium collected when selling an option can vary greatly. In general, the higher the volatility, the more premium we might expect to collect. In addition, ES Weekly Options were not available to trade for the entire backtested period. In order to provide our customers with more accurate back-tested data we can, we have created estimates of premium broken down by Day (Mon-Thu) and used a look-up table for various ranges of the VIX (refer to the Iron Condor product page for details). Please note, these estimates have significant limitations and the corresponding reports which use these estimates should be considered to be much less than perfect. All back-testing has limitations, however back-tested options algorithms have even more in our opinion due to the potential inaccuracies used in determining premium collected estimates. 

Iron Condor Weekly Options Trade List: Trading $10,000 (1 Unit)

Data assumes $10,000 starting account, trading 1 Unit. Includes protection & commission. Results are taken from compiled back-tested/hypothetical accounts which have limitations (see CFTC RULE 4.41 below).

CFTC RULE 4.41: Results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

Start Auto-Trading Today With The Iron Condor

Start using this weekly options trading strategy as a stand alone options trading algorithm or as part of the S&P Crusher Automated Trading System.

Get Started


AlgorithmicTrading.net provides trading algorithms based on a computerized system, which is also available for use on a personal computer. All customers receive the same signals within any given algorithm package. All advice is impersonal and not tailored to any specific individual's unique situation. AlgorithmicTrading.net, and its principles, are not required to register with the NFA as a CTA and are publicly claiming this exemption. Information posted online or distributed through email has NOT been reviewed by any government agencies — this includes but is not limited to back-tested reports, statements and any other marketing materials. Carefully consider this prior to purchasing our algorithms. For more information on the exemption we are claiming, please visit the NFA website: http://www.nfa.futures.org/nfa-registration/cta/index.html. If you are in need of professional advice unique to your situation, please consult with a licensed broker/CTA.

DISCLAIMER: Commodity Futures Trading Commission Futures trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website or on any reports. The past performance of any trading system or methodology is not necessarily indicative of future results.

Unless otherwise noted, all returns posted on this site and in our videos is considered Hypothetical Performance. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

With the exception of the statements posted from live accounts on Tradestation and/or Gain Capital, all results, graphs and claims made on this website and in any video blogs and/or newsletter emails are from the result of back-testing our algorithms during the dates indicated. These results are not from live accounts trading our algorithms. They are from hypothetical accounts which have limitations (see CFTC RULE 4.14 below and Hypothetical performance disclaimer above). Actual results do vary given that simulated results could under — or over — compensate the impact of certain market factors. Furthermore, our algorithms use back-testing to generate trade lists and reports which does have the benefit of hind-sight. While back-tested results might have spectacular returns, once slippage, commission and licensing fees are taken into account, actual returns will vary. Posted maximum draw downs are measured on a closing month to closing month basis. Furthermore, they are based on back-tested data (refer to limitations of back-testing below). Actual draw downs could exceed these levels when traded on live accounts.

CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under — or over — compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Statements posted from our actual customers trading the algorithms (algos) include slippage and commission. Statements posted are not fully audited or verified and should be considered as customer testimonials. Individual results do vary. They are real statements from real people trading our algorithms on auto-pilot and as far as we know, do NOT include any discretionary trades. Tradelists posted on this site also include slippage and commission.

This strictly is for demonstration/educational purposes. AlgorithmicTrading.net does not make buy, sell or hold recommendations. Unique experiences and past performances do not guarantee future results. You should speak with your CTA or financial representative, broker dealer, or financial analyst to ensure that the software/strategy that you utilize is suitable for your investment profile before trading in a live brokerage account. All advice and/or suggestions given here are intended for running automated software in simulation mode only. Trading futures is not for everyone and does carry a high level of risk. AlgorithmicTrading.net, nor any of its principles, is NOT registered as an investment advisor. All advice given is impersonal and not tailored to any specific individual.

* Published percentage per month is based on back-tested results (see limitations on back-testing above) using the corresponding package. This includes reasonable slippage and commission. This does NOT include fees we charge for licensing the algorithms which varies based on account size. Refer to our license agreement for full risk disclosure.