Methodology

A systematic SPX 0DTE strategy

Chelsea Addison Capital operates a fully automated trading strategy on SPX 0DTE (zero-days-to-expiration) index options. Rather than conventional time-based 0DTE approaches, the system uses a proprietary, AI-developed entry framework that responds dynamically to market volatility and price expansion.

How the system trades

A departure from «set-and-forget» in favor of true market reactivity:

Adaptive Chain IntelligenceProprietary algorithms continuously analyze evolving option chain behavior, triggering entries the moment specific structural changes signal opportunity.
Multi-Window ExecutionThe trading day is segmented into multiple execution windows — each with independently calibrated entry criteria, position sizing, and risk parameters tuned to that window’s liquidity and volatility profile.
Dynamic WeightingCapital allocation and risk exposure adapt dynamically to time-of-day, volatility regime, and real-time market conditions — aggressive when conditions favor it, conservative when they don’t.
Intraday AgilityThe system scans the market at high frequency throughout the session, enabling rapid response to emerging opportunities and immediate risk management. A fundamental departure from static, time-based 0DTE approaches.

Risk, managed by machine

Because every position expires the same day, risk in this strategy lives and dies intraday. It is managed accordingly — continuously, automatically, and without discretion.

Automated Position-Level Stops

Every position carries pre-defined, automatically enforced exit logic. No position relies on a human watching a screen.

Dynamic Risk Weighting

Exposure scales with time-of-day, volatility regime, and live market conditions — the system de-risks automatically when its criteria deteriorate.

Defined-Risk Structures

Spread-based structures with defined maximum loss are used where appropriate to bound tail exposure.

Continuous Monitoring

High-frequency scanning across the full session means risk decisions happen in seconds, not minutes — including on fast, high-volatility days.

Built on an in-house engine

The strategy was developed on a custom-built backtesting engine designed around one question: does the logic hold up out of sample? Over-optimization is treated as the primary research risk, with strict controls against curve-fitting. The system is not static — its logic is continuously refined as market regimes evolve, under the same testing discipline that produced it.

Disciplined by construction — engineered to stay rule-bound on calm days and on high-volatility outlier days alike.

We do not publish performance information on this website. Qualified parties with an existing relationship with the Manager may request information directly.