Get Up and Running 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 elect to clone an existing strategy or framework, follow strategies (coming soon), or build your custom strategy from scratch.

This guide focuses on building your strategy from scratch.  You can build as many strategies as you like. Also, Freemium users can enable up to one strategy at a time. Strategies will be sent to Brutus each trading day right before the market close, however, only if they are enabled. This process forms the basis of the ranking job. With Premium accounts (available soon), you will be able to enable multiple strategies at a time.

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

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

To weight your criteria, you can either hit the Weight All Button or weight an individual group in the tree by click the red icon, which indicates your criteria are not yet ranked.

The screen that follows requires you do a pair-wise preferences of each criterion against each criteria in that group. The colors on the slider give a hint that you should yellow and red preference sparingly and stick mostly to the green region.

When you turn the preference all the way to one criterion vs. another, Brutus will understand that you have an "Extreme Preference" for the particular criteria. While Brutus is smart enough to decode your preference based on how you weight the others, he will essentially treat this particular criterion as a filter vs. trying to balance the tradeoffs  between the two criteria.

Don't stress about weighting preference between two dissimilar units. E.g., you could have a slight preference for a the number of Days to Expiration (DTE) to be close to 40 days as possible (units of days) vs. Maximizing Return on Capital (units of %). Brutus can translate all this with the AI framework that runs behind the scenes.

Once your weights are complete, you can optionally hit the "Run Test" button to get a preview of how Brutus will interpret your strategy by returning test results. This is called Sandbox Testing and Brutus performs the ranking on a scaled down market data from 2 weeks ago. As this is outdated information, it is intended to give you a preview of how your strategy will perform and not intended for trading.

Step 2

Enabling Your Strategy

Always remember to fully complete your strategy. You must set the Market Group, Setup Type, and Criteria with their associated weightings. After you will notice that all the buttons that were once red on the screen have turned green. This means that you are ready to enable your strategy. 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 are available each day.

Brutus collects market data 15 min before, instead of after the close each market day. One of the key reasons is you get more representative bid-ask spreads just prior to close, than after the close.  

On your Strategy Listing page, there is a results icon in the Action column. Click this button to bring you to the results page for that particular strategy.

Here you can view all the Ranked Trades with their MCDM scores, which you will find in the bottom left quadrant. Also, the Risk Graph & Charts on the Underlying, which you can find in the top right quadrant. And finally, the Trade-off plot in the bottom right quadrant.

Selected Trades

The top left quadrant shows additional information on the currently selected ranked trade (bottom left). If you change your selection in the Ranked Trades list, both top section's information will be updated to the selected item.

The sunburst plot provides an indication of the contribution for each of the selected specified criteria, as shown here. You can select the key to the top right to display a Legend to help identify those criteria.

Furthermore, the Risk graph shows you the profit & loss trade potential, while the Chart tab indicates the historical trend of the stock price.

Finally, the bottom right Trade-off Plot allows you to visualise two conflicting criteria. The 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 & Y-Axis drop-down boxes. 

We hope this arms you with helpful information to build your own options trading strategy with the Brutus Options Ranker. We’re excited to see what the community comes up with and please don’t hesitate to reach out if you need help.

May the math be ever in your favor.

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