Contraction Entry IV Rank
Setting key
contraction_entry_iv_rank
Default
80
What it does
IV Rank floor for the contraction engine. Only enters on a genuine spike, not an elevated plateau. IVR 80 means current implied volatility is in the top 20% of its 52-week range. At that level, premium is rich and mean reversion is more likely to be fast.
When to change it
Lower to 70 to catch more spikes, at the cost of entering on spikes that may not revert as quickly. Raising above 85 means fewer trades but stronger mean-reversion setups.
Safe range
70 (more trades, weaker signal) to 90 (fewer trades, stronger signal).
Example
AMD IV Rank spikes from 35 to 83 on an analyst downgrade. With contraction_entry_iv_rank=80, the bot evaluates AMD for a short-dated iron condor. IV Rank at 65 would not qualify.