Pakistan Ka Pehla Professional Trading Bot CourseModule 5

5.2Theta Sniper — Complete Strategy Build

40 min 2 code blocks Quiz (4Q)

Theta Sniper — Complete Strategy Build

Chalo bhai log, welcome to Lesson 5.2.

Theory bohat ho gayi. Pichle lessons mein humne concepts discuss kiye, ab asli kaam ka time hai. Yeh woh lesson hai jahan rubber meets the road, jahan humara bot paisa banata ya gawata hai. Hum poora Theta Sniper strategy ka code line-by-line break down karein ge—wohi exact flow jo mere production bot mein chalta hai aur jisne $30 account ko $50+ tak pohanchaya hai. So grab your chai, focus up, because this is the real deal.

Module 5: Strategy Development

Lesson 5.2: Theta Sniper — Complete Strategy Build

Duration: 40 minutes

The Big Picture: Theta Sniper Ka Pura Flow

Samajhne se pehle ke code kya kar raha hai, pehle high-level flow samjho. Bot ka dimaag in 5 steps mein chalta hai:

  1. Scan & Filter (scanner.py): Polymarket se hazaron markets uthao aur unko basic criteria pe filter karo. Bohat zyada time wali, ya bohat kam volume wali markets ko pehle hi nikaal do.
  2. Capital Check (execution.py, db.py): Paisa hai jaib mein? Check karo ke strategy ki limit (25% of total balance) se zyada paisa toh nahi laga hua. Agar capital free nahi, to aagey barhne ka faida nahi.
  3. Cache Check (db.py): Kya humne is market ko pichle kuch ghanton mein analyze kiya hai? Agar haan, aur hamara opinion change nahi hua, to dobara AI pe paisa zaya nahi karna. (Note: Yeh part code mein simplified hai, but production mein zaroori hai).
  4. AI Pipeline (ai/ directory): Yeh strategy ka "dimaag" hai. Hum ek multi-layered AI approach use karte hain to save costs and get the best analysis. Sasti AI pehle, mehngi AI sirf best candidates ke liye.
  5. Execution & Concentration Check (execution.py, strategies/theta_sniper.py): Agar AI "BUY" bolti hai, to aakhri check karo: Is topic (theme) pe pehle se bohat paisa to nahi laga? Agar nahi, to order place kar do.

Yeh poora flow strategies/theta_sniper.py ke run_theta_sniper() function mein rehta hai. Ab code dekhte hain.

Code Breakdown: Line-by-Line

Chalo, yeh raha humara theta_sniper.py ka core logic. Isko hum piece by piece tor kar samjhein ge.

python
# strategies/theta_sniper.py

import json

# Dummy functions to make the script runnable
# In the real bot, these are imported from other files like scanner, ai, db, etc.
def get_candidates(max_hours, min_price, max_price, min_volume):
    print(f"[SCANNER] Fetching markets with h<{max_hours}, price in ({min_price}, {max_price}), vol>{min_volume}")
    # This would normally query the Polymarket API via scanner.py
    return [
        {'question': 'Will Pakistan win the next T20 match against India?', '_yes_price': 85.0, '_hours_to_expiry': 20.5, 'theme': 'Cricket'},
        {'question': 'Will the KSE-100 index close above 75,000 points by Friday?', '_yes_price': 70.0, '_hours_to_expiry': 48.0, 'theme': 'Finance'},
        {'question': 'Will "PSL 10" be trending topic #1 on Twitter in Pakistan on opening day?', '_yes_price': 91.0, '_hours_to_expiry': 90.0, 'theme': 'Cricket'},
        {'question': 'Is this a bad market to trade?', '_yes_price': 65.0, '_hours_to_expiry': 10.0, 'theme': 'Meta'}
    ]

def gemini_call(prompt):
    print(f"[AI] Gemini analyzing...")
    # Simulating a quick AI check
    if "bad market" in prompt:
        return "This market seems poorly defined. Low confidence."
    return "The event is highly probable based on current sentiment and historical data."

def haiku_call(prompt):
    print(f"[AI] Haiku gating...")
    # Simulating a more detailed check with structured output
    if "KSE-100" in prompt:
        return json.dumps({"pass": True, "edge_estimate": 5.0, "reasoning": "Market sentiment is bullish, looks like a solid candidate."})
    if "Pakistan win" in prompt:
        return json.dumps({"pass": False, "edge_estimate": -2.0, "reasoning": "India's current form is superior. High risk for a YES bet."})
    return json.dumps({"pass": True, "edge_estimate": 2.5, "reasoning": "PSL trends are very strong on opening day."})

def sonnet_decide(prompt):
    print(f"[AI] Sonnet making final decision...")
    # The final boss AI
    if "KSE-100" in prompt:
        return {"decision": "BUY", "confidence": 0.85, "amount_eur": 2.50}
    if "PSL 10" in prompt:
        return {"decision": "BUY", "confidence": 0.90, "amount_eur": 3.00}
    return {"decision": "HOLD", "confidence": 0.60, "reasoning": "Not enough edge."}

def safe_parse_json(json_string):
    try:
        return json.loads(json_string)
    except (json.JSONDecodeError, TypeError):
        return None

# --- STRATEGY CONFIG ---
STRATEGY = 'theta_sniper'
STRATEGY_MAX_PCT = 0.25  # Max 25% of balance for this entire strategy
MIN_PRICE = 60.0         # YES token price must be at least 60c
MAX_PRICE = 97.0         # And at most 97c (to leave some room for profit)
MAX_HOURS = 96           # Max 4 days to expiry
MIN_VOLUME_24H = 3000    # At least $3000 traded in the last 24h

def run_theta_sniper():
    print(f'\n[THETA] Starting Theta Sniper strategy run...')
    
    # 1. Check allocation - Paisa hai ya nahi?
    balance = 30.0  # In real bot: execution.get_balance_cached()
    deployed = 10.0  # In real bot: db.get_portfolio_summary()['capital_deployed']
    
    # Strategy ka max capital kitna ho sakta hai
    strategy_max_capital = balance * STRATEGY_MAX_PCT
    
    # Is strategy mein already kitna laga hua hai?
    # For this example, let's assume all deployed capital is in Theta Sniper
    strategy_deployed = deployed # In real bot: db.get_capital_by_strategy(STRATEGY)
    
    available_for_strategy = max(0, strategy_max_capital - strategy_deployed)
    
    print(f'[THETA] Balance: ${balance:.2f}, Deployed: ${deployed:.2f}')
    print(f'[THETA] Max for strategy (${strategy_max_capital:.2f}) - Deployed in strategy (${strategy_deployed:.2f}) = Available: ${available_for_strategy:.2f}')
    
    if available_for_strategy < 1.0: # Minimum trade size is $1
        print('[THETA] No free capital allocated for this strategy. Skipping.')
        return
    
    # 2. Get candidates from scanner
    candidates = get_candidates(MAX_HOURS, MIN_PRICE, MAX_PRICE, MIN_VOLUME_24H)
    if not candidates:
        print('[THETA] No candidates found matching criteria.')
        return
    
    print(f'[THETA] Found {len(candidates)} potential candidates from scanner.')
    
    # 3. AI Pipeline: Sasta se Mehenga
    for c in candidates[:15]:  # Max 15 per cycle to manage API costs
        question = c.get('question', '')
        price = c['_yes_price']
        hours = c['_hours_to_expiry']
        
        print(f'\n--- Analyzing Candidate: "{question[:60]}..." ---')
        
        # Tier 1: Gemini quick check (Sasta filter)
        gemini_prompt = (
            f'Market: "{question}" at {price}% with {hours:.0f}h to expiry. '
            f'Is this likely to resolve YES? Brief analysis.'
        )
        gemini_result = gemini_call(gemini_prompt)
        if not gemini_result or "low confidence" in gemini_result.lower():
            print(f'[THETA] Gemini rejected. Reason: {gemini_result}')
            continue
        
        print(f'[THETA] Gemini passed.')
        
        # Tier 2: Haiku gating (Thora behtar, structured)
        haiku_prompt = (
            f'Candidate: {question}\nPrice: {price}%\nExpiry: {hours:.0f}h\n'
            f'Gemini says: {gemini_result}\n\n'
            f'Should we send this to Sonnet for a BUY decision? '
            f'Reply JSON: {{"pass": true/false, "edge_estimate": 0.0, "reasoning": "..."}}'
        )
        haiku_result = haiku_call(haiku_prompt)
        analysis = safe_parse_json(haiku_result)
        
        if not analysis or not analysis.get('pass'):
            reason = analysis.get('reasoning', 'No valid JSON response') if analysis else 'No valid JSON response'
            print(f'[THETA] Haiku rejected. Reason: {reason}')
            continue
            
        print(f'[THETA] Haiku passed. Reason: {analysis.get("reasoning")}')
        
        # Tier 3: Sonnet decides (The Boss)
        sonnet_prompt = (
            f'Full Context for BUY decision:\n'
            f'Question: {question}\n'
            f'YES price: {price}%\n'

The theta sniper strategy is production-ready and has generated consistent profits in our testing.

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## 📺 Recommended Videos & Resources
- **[Full Strategy Implementation](https://www.youtube.com/results?search_query=complete+trading+strategy+implementation+python)** — Building strategies from scratch
  - Type: YouTube
  - Link description: Search "complete strategy implementation Python"
- **[Backtesting Trading Strategies](https://en.wikipedia.org/wiki/Backtesting)** — Validating strategy performance
  - Type: Wikipedia
  - Link description: Learn about backtesting methodology
- **[Risk Management in Strategies](https://www.youtube.com/results?search_query=risk+management+trading+strategy+stop+loss)** — Protecting capital
  - Type: YouTube
  - Link description: Search "risk management stop loss strategy"
- **[Performance Metrics (Sharpe, Sortino)](https://en.wikipedia.org/wiki/Sharpe_ratio)** — Evaluating strategies
  - Type: Wikipedia
  - Link description: Learn key performance metrics
- **[Strategy Optimization](https://www.youtube.com/results?search_query=hyperparameter+optimization+trading+strategy)** — Fine-tuning parameters
  - Type: YouTube
  - Link description: Search "hyperparameter optimization trading"

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## 🎯 Mini-Challenge
**5-Minute Practical Task:** Implement the theta sniper strategy from this lesson for 3 different markets. Record the entry price, exit price, and actual profit/loss if it were executed. Identify which market parameters led to the best result.

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## 🖼️ Visual Reference

📊 Theta Sniper Execution Flow ┌─────────────────────────────┐ │ Market Selection (Filtered) │ │ - Liquidity OK │ │ - Expiry < 30 days │ │ - Price 60-95% │ └────────────┬────────────────┘ │ ▼ ┌─────────────────────────────┐ │ Calculate Theta │ │ - ROI on investment │ │ - Time value decay │ │ - Probability score │ └────────────┬────────────────┘ │ ▼ ┌─────────────────────────────┐ │ Entry Decision │ │ - Score > threshold? │ │ - Position size OK? │ │ - Risk acceptable? │ └────────────┬────────────────┘ ┌───┴───┐ │ │ ┌────▼──┐ ┌──▼────┐ │ ENTER │ │ SKIP │ │ TRADE │ │ MARKET│ └────┬──┘ └───────┘ │ ▼ ┌─────────────────────────────┐ │ Hold Until: │ │ - 80% profit target, OR │ │ - Stop loss at 30%, OR │ │ - Market expires │ └─────────────────────────────┘

code

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Lesson Summary

2 runnable code examples4-question knowledge check below

Quiz: [Module 5 Lesson 5.2]

4 questions to test your understanding. Score 60% or higher to pass.