OptionForge Lua API Documentation

-- Put Credit Spread Example
-- This is an example trade. It will look complex at first glance.
-- But, it contains most of the pieces to implement any strategy.

-- nearly all trades will want some sort of condition to open the trade.
-- this is often day of week and number of open trades.
if day_of_week == "Tue" and portfolio.n_open_trades < 5 and MA:EMA(10) > MA:EMA(20) then
    trade = portfolio:new_trade()
    dte = 45; qty = 2;
    trade:add_leg(Put("SP", Delta(-10), dte, -qty))
    -- use the strike of the short put to determine placement of the LP.
    local sp = trade:leg("SP")
    trade:add_leg(Put("LP", Strike(sp.strike - 50), dte, qty))
    -- the 1st 200 print statements will go to your javascript console (ctrl+shift+j)
    -- this is a nice way to debug your code
    print(trade)
    -- sometimes the strikes are not availabe so we end up with a trade
    -- that is not 50-wide
    local dist = sp.strike - trade:leg("LP").strike
    -- make it like the trade never existed.
    if dist > 75 or dist < 25 then trade:erase() end 
end
-- nearly all strategies will want to check the trades each day for StopLoss or ProfitTarget
-- or adjustments.
for _, trade in ipairs(portfolio:trades()) do
    if math.abs(trade.pnl) > 10000 then
       trade:erase() -- can get rid of trades with bad data (but be careful!!).
    elseif trade.pnl > 300 or trade.pnl < -2000 then
        trade:close(trade.pnl > 0 and "PT" or "SL") -- PT or SL
    elseif trade.dte < 2 then
        trade:close("Days in Trade") -- the message to close gets logged to "User Counts tab"
    end
end

-- VIX trading strategy example
local dte = 41

-- Open new trades on Mon/Wed/Fri when VIX is below 20
if (day_of_week == "Mon" or day_of_week == "Wed" or day_of_week == "Fri") 
   and underlying_price < 20 then
    local trade = portfolio:new_trade()
    -- Short call 2 points below current price
    trade:add_leg(Call("Call", Strike(underlying_price - 2.0), dte, -1))
    -- Long call at strike 32 for protection
    trade:add_leg(Call("LC", Strike(32), dte, 2))
end

-- Manage existing trades
for _, trade in ipairs(portfolio:trades()) do
    -- Close long call if mid price > 500
    if trade:has_leg("LC") and trade:leg("LC").mid > 500 then
        trade:close_leg("LC")
        print("LC closed", date)
    -- Close entire trade if less than 7 days to expiration
    elseif trade.dte < 7 then
        trade:close()
    elseif trade.pnl > 600 or trade.pnl < -500 then
        trade:close() -- PT or SL
    end
end

-- IRON Condor Ex
function create_iron_condor(dte, short_delta, qty)
    local trade = portfolio:new_trade()
    local width = 25 -- points wide IC
    
    -- Short call 
    trade:add_leg(Call("SC", Delta(short_delta), dte, -qty))
    local sc_strike = trade:leg("SC").strike

    -- Long call
    trade:add_leg(Call("LC", Strike(sc_strike + width), dte, qty))

    -- Check if the short call and long call have the same strike
    if trade:leg("SC").strike == trade:leg("LC").strike then
        portfolio:count("same-strike")
        trade:close_leg("LC", true)
        trade:add_leg(Call("LC", Strike(sc_strike + 2 * width), dte, qty)) -- could also close leg and re-open
        -- now check again and erase trade if still same:
        if trade:leg("SC").strike == trade:leg("LC").strike then
            trade:erase()
            return nil
        end
        print(trade)
    end
    -- log the width we ended up getting in user-counts
    portfolio:count("width:" .. tostring(trade:leg("LC").strike - trade:leg("SC").strike))

    -- Short put
    trade:add_leg(Put("SP", Delta(-short_delta), dte, -qty))
    local sp_strike = trade:leg("SP").strike
    trade:add_leg(Put("LP", Strike(sp_strike - width), dte, qty))

    return trade
end

-- Open new iron condor on Mondays
if day_of_week == "Mon" then
    local qty = 1
    local dte = 45
    local short_delta = 20
    local ic = create_iron_condor(dte, short_delta, qty)
end

-- Strategy that dynamically adjusts delta based on day of week
local trade = portfolio:new_trade()

-- Initial neutral position
local dte = 30
local qty = 1
trade:add_leg(Put("ShortPut", Delta(-30), dte, -qty))
trade:add_leg(Put("LongPut", Delta(-50), dte, qty))

-- Check and adjust every day
if day_of_week == "Mon" then
    -- Monday: bearish bias
    trade:adjust(TradeDelta(-3), "ShortPut")
elseif day_of_week == "Fri" then
    -- Friday: bullish bias
    trade:adjust(TradeDelta(2), "ShortPut")
else
    -- Other days: neutral
    trade:adjust(TradeDelta(0), "ShortPut")
end

for _, trade in ipairs(portfolio:trades()) do
    if trade.pnl > 1000 then
        trade:close("Profit Target")
    elseif trade.pnl < -1000 then
        trade:close("Stop Loss")
    elseif math.abs(trade.delta) > 4 then
        trade:adjust(TradeDelta(0), "ShortPut")
    end
end

-- Put Back Ratio
short_qty = 2
long_qty = 3
if day_of_week == "Tue" then
    trade = portfolio:new_trade()
    dte = 45; 
    trade:add_leg(Put("SP", Delta(-2), dte, -short_qty))
    sp_mid = trade:leg("SP").mid 
    print("sp_mid:", sp_mid)
    -- use the mid of the short put to determine placement of the LP.
    trade:add_leg(Put("LP", Mid(sp_mid / long_qty - 1.0), dte, long_qty))
    -- the 1st 50 print statements will go to your javascript console (ctrl+shift+j)
    -- this is a nice way to debug your code
    print(trade) 
end
-- nearly all strategies will want to check the trades each day for StopLoss or ProfitTarget
-- or adjustments.
for _, trade in ipairs(portfolio:trades()) do
    if math.abs(trade.pnl) > 10000 then
       -- trade:erase() -- can get rid of trades with bad data (but be careful!!).
    elseif trade.pnl > 1000 or trade.pnl < -2000 then
        trade:close(trade.pnl > 0 and "PT" or "SL") -- PT or SL
    end
end