How to Set Up Automated Options Trading for the New Year

Setting up automated options trading for the new year takes less time than most people expect. If you have a brokerage account and about 30 minutes, you can be positioned to go live on January 2 — the first full trading day of the year.

This guide walks through each step in order, from reviewing your broker to activating your first position.

Step 1: Review Your Brokerage Account

Not all brokers support the options tier required for iron condors. Most require at least Level 3 options approval (selling spreads).

Check two things before anything else:

• Your current options approval level
• Whether your broker integrates with Tradematic, the automated iron condor trading platform

Tradematic works with Tastytrade and Tradier. If you're on a different broker, you'll need to open an account at one of these. Both are straightforward — Tastytrade typically approves options accounts within one business day.

Step 2: Fund Your Account

The minimum to run Tradematic is $1,000, though most traders operate with $5,000 to $20,000 to allow proper position sizing.

If you plan to start January 2, initiate any transfers no later than December 26. Most ACH transfers take 1–3 business days, and year-end banking can add a day.

Wire transfers settle faster — same day or next day — if you're working with a tight timeline.

Step 3: Enable Options Trading

Once your account is funded and approved, confirm that options trading is enabled at the spread level:

1. Log into your brokerage account
2. Navigate to account settings or trading permissions
3. Confirm Level 3 (or "defined-risk spreads") is active
4. If not, submit the upgrade request — approvals typically arrive within 24 hours

For detailed steps by broker, see our guides on how to enable options trading on Tastytrade and how to enable options trading on Tradier.

Step 4: Connect Your Broker to Tradematic

This is the core integration step. Tradematic reads your account data and places trades automatically based on iron condor setups identified using institutional gamma data and dealer hedging flows.

To connect:

1. Create your Tradematic account at portal.tradematic.app
2. Navigate to the "Broker Connection" section
3. Select your broker (Tastytrade or Tradier)
4. Authorize the connection — this grants Tradematic permission to execute trades on your behalf

The connection takes under 5 minutes. Once linked, Tradematic shows your account balance and available margin.

Step 5: Configure Your Parameters

Before going live, set two things:

Capital allocation: How much of your account Tradematic should deploy. Most traders start with 50–70% of available capital to leave room for margin fluctuations.

Risk per trade: The maximum loss per iron condor position. The default settings are designed to keep any single loss small relative to the overall account.

You do not need to select which underlying to trade, which strikes to use, or when to enter. Tradematic handles all of that using real-time market structure data.

Step 6: Go Live on January 2

Once everything is configured, you can activate Tradematic and let it run.

January 2 is typically a normal trading session with decent liquidity. Options markets re-open after the holiday break, and premium levels often reflect the uncertainty of the new year — which can be favorable for iron condor setups.

A few things to keep in mind for the first week of January:

• Early January can show elevated volatility due to the January Effect (small-cap stocks tend to outperform briefly after year-end tax-loss harvesting reversal). Tradematic accounts for market structure when selecting strikes, but be aware this seasonal pattern can add short-term movement.
• Liquidity is generally good by mid-morning on January 2.
• Review your positions briefly each week, not each day. Automated systems are designed for lower-frequency oversight.

What You Do Not Need to Do

Common misconceptions about setup:

• You do not need to learn to trade manually first. Tradematic manages execution discipline from day one.
• You do not need to watch screens. Set alerts for significant account events, then check in weekly.
• You do not need to start on a specific day. January 2 is a good anchor, but any weekday works.

For a broader comparison of automated vs. manual approaches, see automated trading vs manual trading: which works better.

Checklist: Ready to Go Live?

Once all boxes are checked, you're ready.

The advantage of starting at the beginning of January is psychological as much as logistical. You're establishing a system before daily market noise creates reasons to delay. A clean start on January 2 is easier to maintain than waiting for the "right" moment.

Start your 7-day free trial and have everything configured before the market opens.

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Frequently Asked Questions

How long does it take to set up Tradematic? The full setup — broker connection, capital allocation, and parameter configuration — takes about 30 minutes, assuming your brokerage account is already funded and options-approved.

Can I start with less than $5,000? Yes. The minimum is $1,000. At lower account sizes, position sizing is smaller, which reduces both potential income and risk per trade. The $5,000–$20,000 range gives more flexibility to size positions appropriately.

Do I need to monitor trades once live? No active monitoring is required. Tradematic handles entries, adjustments, and exits. A weekly check to review account performance is enough for most traders.

What if my broker isn't Tastytrade or Tradier? You'll need to open an account at one of these two brokers. Both offer options trading at no commission per contract (Tastytrade) or very low commissions (Tradier), and both allow the API access Tradematic requires.

Is January a good time to start iron condor trading? January can have slightly elevated volatility in small-cap names due to the January Effect. Tradematic uses market structure data to pick entries, so the timing of your account setup matters less than having the system configured and running consistently.

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Trading involves risk and losses can occur. Past performance does not guarantee future results. Options trading is not suitable for all investors. Only allocate capital you are comfortable risking.