Mechanical Manage DTE

Setting key
mechanical_manage_dte
Default
21

What it does

DTE backstop for mechanical engine positions. If a mechanical iron condor reaches this many days to expiration without hitting its profit target, ACondor closes it regardless of P&L. This prevents holding positions into the high-gamma zone close to expiration where small moves cause large delta swings. The tastytrade research-based rule is 'close at 21 DTE': the theta-to-gamma tradeoff degrades past this point.

When to change it

Raise slightly (to 25-28) if you want to give positions more time to reach the profit target. Lower (to 14-18) to exit earlier and reduce gamma risk. Do not lower below 7: you are then holding through expiry week which is the highest-risk period.

Safe range

7 DTE (aggressive, exits early) to 28 DTE (permissive, more time for profit target). Default 21 matches tastytrade's published mechanical strategy.

Example

Iron condor entered at 38 DTE. Profit target is 50% of max credit. At 21 DTE the position is at 35% profit, below target. The manage DTE backstop fires and the bot closes it at a partial win rather than holding into expiry week.

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.