Debit Spread POMDP‑Inspired Strategy

Comprehensive Strategy for TradingView-Based Call and Put Debit Spread Options Using POMDP for Signal Generation

• Debit spreads limit risk to the net premium paid while capping potential profit, ideal for moderate price predictions.
  
• Pine Script in TradingView enables custom indicator integration and strategy automation for options trading.
  
• Partially Observable Markov Decision Processes (POMDPs) optimize decision-making under market uncertainty by modeling states, actions, and observations.
  
• Training a POMDP policy involves defining market states, actions, and observations from technical indicators, then simulating and refining the policy.
  
• Automating the strategy via agents or TradingView alerts can execute trades when conditions align with the POMDP-generated signals.