Get Started in 3 Easy Steps

Get Started in No Time!

Step 1

Build Your First Brutus Strategy

The Brutus Options Ranker works on your strategies. You have a few options to get started. You can select to clone an existing strategy, follow strategies (an option that will be coming soon), or build your custom strategy from scratch.

This guide will focus on building a strategy from scratch.  You can build as many strategies as you like. Note that Freemium users will be able to enable up to one strategy at a time. Once your strategy is enabled, it be sent to Brutus each trading day right before the market close and forms the basis of the ranking job.  Premium accounts will be available soon, which will allow you to enable multiple strategies.

A strategy consists of a 3 elements to make it run:

  • Market group
  • Options setup
  • Strategy criteria
  • Weighting your criteria

The most important activity to build up your strategy is to add criteria to your Strategy Tree.

After you select your market group and your Options Setup Type, Brutus understands what goes into the funnel for ranking.  This is an important concept, we call these the alternatives generated for the strategy.  You will see a visual representation of what goes into the funnel at the bottom of the Strategy Builder page, shown in the image below.

A visual representation of your strategy.

This visual representation of your strategy, is referred to the strategy tree.  When building your strategy from scratch, you will be presented with a blank tree.  

Adding criteria to your tree.

It's now time to drag and drop your criteria into the tree.  

Simply drag and drop one of the two into your tree:

Groups - these are logical collection of criteria that are related.  You can add any type of group and name it whatever you'd like.  We recommend using a consistent groups across your strategies.

A good practice is to have a group for: Minimize Risk, Maximize Reward, and Maximize Liquidity. These can go at the root of your tree.

We have provided a framework template which you can clone to get this set of groups at the root of your tree.​

Criteria - The criteria panel to the left of the tree has a multitude of sections with different criteria. You can go into the profitability criteria panel, for example, and add the setup's Return on Capital to your tree.  If you are unfamiliar with a criteria you can click the help tip icon next to the criterion.

Once you add a criteria to the tree, you will be prompted to state your objective with regards to that specific criteria. You can either maximize, minimize, or target the criteria to a particular value. For our example, using the Return on Capital criterion, we want to maximize this criterion as much as possible.

Once you've added all the criteria you want evaluated, then it's time to move on to Weighting Your Criteria.

Step 2

Enabling Your Strategy

The buttons for enabling your strategies will be red. However, once you have built your strategy by setting the Market Group, Setup Type, and Criteria with their associated weightings, you will notice them turn green. This means that you are ready to enable your strategy. Finally, you can go ahead and click the enable button directly in the build screen or in your strategy listing page.

Step 3

Check Back for Daily Results

New Strategy Results will be available each day.

Brutus collects market data 15 minutes before the close each market day. Data is collected before the market close instead of after for a few important reasons. One of the key reasons is that you get more representative bid-ask spreads just prior to close than after the close.  

Located on your Strategy Listing page, there is a results icon in the Action column. Click this button to navigate to the results page for that particular strategy.

More...

On this page you can view the all the Ranked Trades with their MCDM scores (bottom left quadrant). The Risk Graph & Charts is on the Underlying (top right quadrant), and a Tradeoff plot (bottom right quadrant).

​The top left quadrant shows additional information on the currently selected ranked trade (bottom left). Changing your selection in the Ranked Trades list will update both top sections information to the selected item. The sunburst plot shown here gives you an indication of contribution for each of the specified criteria that you selected when building your Strategy. Selecting the key to the top right will display a Legend to help identify those criteria.

Furthermore, the Risk graph shows you the profit and loss trade potential. Meanwhile the Chart tab will show you a historical trend of the stock price.

The bottom right Trade off Plot allows you to visualise two conflicting criteria. Of course, te idea behind this plot is to search for outliers which could potentially be interesting trades. You have the ability to change the comparison using the X-axis and Y-Axis dropdown boxes. 

Ultimately we hope this arms you with the information you need to easily build your own strategies with the Brutus Options Ranker. We’re thrilled to see what the community comes up with and remember... don’t hesitate to reach out if you need help. We are here to answer your questions!

May the math be ever in your favor.

Select Template
Tags:
Was this article helpful?
Dislike 0
Share
>
Thanks for sharing. Connect with us on social media for additional content!

Send this to a friend

Hi, this may be interesting you: Get Started in 3 Easy Steps! This is the link: https://www.optionautomator.com/blog/kb/get-started-in-3-steps/