203: SPX 1DTE Strategy: AI Backtesting with ChatGPT & MCP
What if you could take a simple observation about the stock market and use AI to research dozens of SPX options strategies in just a few minutes?
In this episode of the Stock Market Options Trading podcast, I'm experimenting with a new approach to researching and backtesting SPX 1DTE options strategies using Alpha Crunching, ChatGPT, and Option Omega's new MCP server.
We start with Alpha Crunching's updated Tomorrow's Triumph Rate (TTR V2), which tracks historical SPX price tendencies by day of the week and time of day. Using a recent bearish bias from Wednesday into Thursday, we explore potential 1DTE call credit spread strategies.
Rather than manually building every backtest, I'm using ChatGPT to communicate directly with Option Omega, test different deltas and entry times, compare profit targets, and ultimately save a strategy for further review.
Along the way, we uncover some interesting results, including why higher-delta credit spreads can sometimes outperform lower-delta trades despite having lower win rates.
In this episode:
- How Alpha Crunching's TTR V2 identifies potential SPX trading opportunities
- Connecting ChatGPT to Option Omega through an MCP server
- Backtesting SPX 1DTE call credit spreads across multiple deltas and entry times
- Comparing hold-to-expiration strategies with profit-taking targets
- Using AI to identify promising strategies and save backtests directly into Option Omega
- Why recent market tendencies and rolling data can be useful for developing trading ideas
This episode is less about finding the perfect strategy and more about exploring a new research process that could make data-driven options trading more accessible and efficient.
I'm just getting started with AI-assisted backtesting, and I'd love to hear how others are using these tools.
Resources:
Alpha Crunching: https://alphacrunching.com
Option Omega: https://optionomega.com
Disclaimer: Backtested performance does not guarantee future results. Options trading involves risk. This content is for educational purposes only and is not financial advice.
#SPX #OptionsTrading #1DTE #ChatGPT #Backtesting #OptionOmega #AITrading
