# Credit Spread Strategy

### What is a Credit Spread Strategy?

* A **Credit Spread** is a **two-leg strategy**
* It is a directional strategy
* It is best when you think price will move **one way** or stay on one side
* There are two common uses:
  * bullish
  * bearish

### Step 1: Bot & Strategy

* Choose **Credit Spread**
* Pick your broker
* Name your bot
* Choose the symbol you want to trade
* Choose this strategy if you have a **directional view**

### Step 2: Entry Rules

* **Short Strike Delta**
  * Choose how close the short strike should be
  * **Lower delta** = farther away, safer, less premium
  * **Higher delta** = closer, more premium, more risk
* **Spread Width**
  * Choose the distance between the short strike and the long strike
  * Wider spread = more risk
  * Narrower spread = less risk
* **Days to Expiration (DTE)**
  * Choose how far out the options expiration should be
* **Min VIX / Max VIX**
  * Set the allowed volatility range for entry
* **Entry Time**
  * Choose when the bot can open new trades

### Step 3: Exit Rules

* Set a profit target
* Set a protection exit if the trade starts moving against you
* Exit rules help the bot know when to close the position instead of waiting too long

### Step 4: Risk

* Set how much to risk per trade
* Limit how many spreads can be open at once
* Limit total exposure in one direction
* Use smaller risk if you want a more conservative bot

### Step 5: Review

* Review the setup before submitting
* Make sure the direction, delta, width, DTE, and risk settings all make sense together