OPEN-SOURCE SCRIPT
Debit Spread POMDP‑Inspired Strategy
Comprehensive Strategy for TradingView-Based Call and Put Debit Spread Options Using POMDP for Signal Generation
- Debit spreads limit risk to the net premium paid while capping potential profit, ideal for moderate price predictions.
- Pine Script in TradingView enables custom indicator integration and strategy automation for options trading.
- Partially Observable Markov Decision Processes (POMDPs) optimize decision-making under market uncertainty by modeling states, actions, and observations.
- Training a POMDP policy involves defining market states, actions, and observations from technical indicators, then simulating and refining the policy.
- Automating the strategy via agents or TradingView alerts can execute trades when conditions align with the POMDP-generated signals.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.