Contraction Engine Enabled

Setting key
contraction_enabled
Default
ON

What it does

Master on/off toggle for the volatility contraction engine. When OFF, ACondor does not scan for non-earnings IV spike entries. Existing contraction positions continue to be managed. The contraction engine fires on sudden IV spikes (IV Rank above 80 with a confirmed recent jump) in names without upcoming earnings, entering short-dated defined-risk positions to ride the fast mean-reversion of volatility.

When to change it

Turn OFF if you want to trade only the mechanical and earnings engines. The contraction engine requires a high IV Rank floor so it fires infrequently; it is rarely the right one to disable unless you specifically want to avoid short-dated positions.

Safe range

ON or OFF.

Example

A sector-wide selloff causes several tech names to spike to IV Rank 85. With contraction enabled, ACondor evaluates these for short-dated iron condor entries. With it disabled, these opportunities are skipped.

Financial Information Disclaimer

This site provides general information about ACondor, a software tool for automating options trading strategies. Nothing on this site is investment, tax, or financial advice. Options trading involves substantial risk of loss. Past behavior of any strategy does not guarantee future results. Consult a licensed financial professional before trading options. ACondor may earn a commission from affiliate links at no extra cost to you.