Contraction Target DTE Min
Setting key
contraction_target_dte_min
Default
7
What it does
Minimum DTE for contraction engine trades. Short-dated by design: the thesis is that vol spikes mean-revert fast (from IVR 80, on average less than 7 days to fall ~20 points). Short cycles ride the contraction and exit before the position has time to be tested.
When to change it
Raising above 7 gives the position more time but also more exposure. The sweet spot is 7-21 DTE.
Safe range
5 (very short) to 14. Below 5 the spread is too tight to build cleanly.
Example
Vol spike on Monday. With 7 DTE minimum, the bot targets the following Monday's expiration or later.