SPX 0DTE Credit Spread Strategy Using the Trend Spread Engine

Trading SPX 0DTE options has become extremely popular, but many tools focus only on signals or technical indicators. The Trend Spread Engine (TSE) from Alpha Crunching takes a different approach by combining trend analysis, strike selection, time-of-day backtesting, and real-time alerts into one system designed specifically for SPX 0DTE credit spreads.

The goal isn’t to take every alert. Instead, the system helps traders identify higher-probability conditions and levels they can use when planning their trades.

How the Trend Spread Engine Works

Each trading day, the Trend Spread Engine posts potential SPX 0DTE credit spread setups in the Alpha Crunching Discord server.

Alerts are generated throughout the day from 10:00 AM to 3:00 PM Eastern Time. Every alert is recorded in a database so performance can be tracked over time.

At the end of each week, the system generates a Trend Spread Engine report, which ranks each time interval based on how the trades performed over the previous 90 days.

This process helps identify which times of day have historically produced the strongest results.

Instead of guessing when to trade during the day, traders can focus on the timeframes that have recently been performing the best.

Using Time-of-Day Data for SPX 0DTE Trading

One of the key insights from the Trend Spread Engine is that not all times of the trading day perform the same.

When analyzing the last 90 days of alerts, certain intervals tend to consistently outperform others. For example, a recent report showed the top timeframes were:

• 10:30 AM
• 10:00 AM
• 10:15 AM
• 11:30 AM
• 12:15 PM

During the upcoming trading week, these top-ranked intervals become the primary timeframes traders may want to pay attention to.

The idea is simple: focus your attention when the data suggests the conditions have historically been the strongest.

Turning TSE Alerts Into Tradeable Levels

A recent update to the Trend Spread Engine adds a visual component to the alerts.

Each alert now includes an SPX 5-minute chart showing the short strikes from the top performing timeframes, along with the 90-day win rate from the weekly report.

This makes it easier to see:

• Where high-probability short strikes are located
• Which time intervals have been performing the best recently
• Potential levels where the market may struggle to reach

Even if a trader does not take the alert itself, the strikes can act as reference levels for structuring credit spreads or evaluating potential resistance and support zones.

A Data-Driven Approach to SPX Credit Spreads

Selling credit spreads is fundamentally about selecting strikes where you believe price is unlikely to reach before expiration.

The Trend Spread Engine attempts to improve that process by combining multiple factors:

• Market trend
• Strike selection
• Time-of-day performance
• Historical win-rate tracking
• Real-time alerts and chart levels

Together, these elements create a more structured and data-driven approach to trading SPX 0DTE options.

Learn More About the Trend Spread Engine

If you’re interested in a systematic approach to SPX 0DTE credit spreads, the Trend Spread Engine is part of the Alpha Crunching platform.

You can learn more about how the system works, view the weekly performance reports, and see examples of the alerts by visiting the Alpha Crunching blog.

👉 Click Here to get started. Use code SPX50 for a discounted trial.

‍