Blew my account on 0DTEs, spent the week building the tool that might have saved it
u/jtm_ind ·
Reddit — r/algotrading
· March 23, 2026 at 20:13
· ⬆ 17 pts
· 💬 52 comments
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Summary
The author blew their account trading 0DTE puts based on news "vibes" and theta decay.
To fix their situational awareness, they built a tool to track real-time session highs/lows of individual SPY and QQQ components, theorizing that equal-weight breadth divergence precedes market-cap weighted index moves.
Quality assessment: Speculation/Noise. The author is trading an unbacktested theory immediately after blowing up their account.
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Last Monday I loaded up on 0DTE puts. War headlines were circulating, felt like the move was imminent. It wasn't. Not that day anyway. Theta ate me alive and I closed out at a loss, and with a remaining balance of 0.93; Friday the headlines actually hit.
Markets were choppy and I was trading vibes instead of watching what the individual names were actually doing. The equal-weight picture usually tells you something before SPY moves.
My theory is that when the enough of the individual stocks start making new session lows quietly, the index tends to lag before it catches up. On a week like last week that was the tell, and i sat through the pain in an attempt to strengthen my tolerance
eTrade Pro used to have a real-time high/low ticker across the entire market. They killed it and I've been missing it ever since.
After Friday I stopped coping and spent the weekend rebuilding it with a tight focus on SPY and QQQ. I've been running, and the difference in situational awareness is noticeable, especially on 0DTE days when you're trying to read whether the chop is about to resolve.
I genuinely think there is an edge here, as it has worked in the past (only when you take profits fast) has anyone else used an equal-weight vs index divergence?
Market-cap weighted indices can mask underlying weakness or strength in individual components. When a critical mass of individual stocks quietly make new session lows, the broader index tends to lag before catching up to the downside (and vice versa). Monitor real-time high/low breadth of SPY components to time short-term 0DTE directional trades. Extreme theta decay on 0DTE options, false signals in choppy markets, and the strategy is completely unbacktested.