Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Long Butterfly Spread – Amibroker AFL code

46 sec read

The Long butterfly spread is a neutral strategy that is a combination of a bull spread and a bear spread. It is a limited profit, limited risk options strategy. There are 3 striking prices involved in a butterfly spread and it can be constructed using calls or puts.

Long Butterfly spread is constructed using Buy 1 ITM Call ,Sell 2 ATM Calls, Buy 1 OTM Call.the long butterfly can be constructed by buying one lower striking in-the-money call, writing two at-the-money calls and buying another higher striking out-of-the-money call. A resulting net debit is taken to enter the trade.

Long Call Butterfly Spread
Butterfly Spread

 

Payoff Diagram for Long Butterfly Strategy
Long Butterfly

Procedure to Setup Long Butterfly Spread

1.Download Butterfly Spread.afl to Amibroker/Formulas/Options Spread directory
and Unzip the file. Create Options Spread Directory if it doesn’t exist.
2.Open Amibroker->File->Open New Blank Chart
3.Now on the Left Pane goto Charts->Option Spread and drag and drop Bear Iron Condor Spread to the blank chart.
4.Bingo! you got the Spread chart.
5.To Change the spread right click over the charts and goto Parameters where you have control to change the ITM call/put strike A, ATM call/Put Strike B, OTM Call/Put Strike C prices as shown below

Long Butterfly Option Spread Parameters

Supported Strategies
1. Long Call Butterfly
2. Short Call Butterfly

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

How to Automate your Strategy just by Adding Two…

Since the start of Algomojo, we are focusing on one thing how to simplify the Automated Execution controls so that traders can easily convert...
Rajandran R
2 min read

[Free Webinar] Starting Amibroker AFL Coding Right from the…

Interested in Creating your own indicators/Buy or Sell Trading System. Learn How to build your own trading system using Amibroker. If you are new...
Rajandran R
27 sec read

Angel Broking Multi-Client Amibroker Trading Module

Got frequent requirements from Angel Broking Customers to automate Amibroker based trading system where one single generation from charts could punch orders in multiple...
Rajandran R
6 min read

2 Replies to “Long Butterfly Spread – Amibroker AFL code”

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More