Extract spread monitoring logic into its own file

iron_condor.py

@@ -2,19 +2,19 @@ import logging
 import nest_asyncio
 import traceback
 
-from dataclasses import replace
 from datetime import datetime
 from dotenv import load_dotenv
 from os import getenv
 
-from ibkr import Client, OptionLeg, OptionOrder
+from ibkr import Client, OptionLeg
 from ibkr.option_type import CALL, PUT
 from ibkr.order_action import BUY, SELL
 
 from iron_condor_trade import IronCondorTrade
+from monitor_spread import monitor_spread
 from options_chain import OptionsChain
 from option_type import OptionType
-from trades_table import insert_trade, update_trade
+from trades_table import insert_trade
 
 load_dotenv()
 
@@ -22,64 +22,6 @@ load_dotenv()
 # Necessary for monitoring spread prices asynchronously while interacting with the IBKR client.
 nest_asyncio.apply()
 
-def monitor_spread(trade: IronCondorTrade, spread_order: OptionOrder, client: Client):
-    """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
-        Stop loss orders will not execute if trying to sell back a contract with no bid while paper trading.
-        Therefore, the spread price must be monitored and the spread manually exited if the stop price is reached.
-        If there is no bid for the long leg, only the short leg will be exited.
-    """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
-    stop_price = spread_order.fill_price * trade.stop_multiple
-    stopped_out = False
-
-    short_leg = spread_order.legs[0]
-    long_leg = spread_order.legs[1]
-    market_data = {}  # Stores real-time market data for each leg.
-
-    def on_market_data_update(update_event):
-        # Prevent the trade from being exited multiple times if there are other updates queued.
-        # This will prevent unintentionally entering new trades.
-        nonlocal stopped_out
-        if stopped_out:
-            return
-
-        # Ensure there is market data for both legs before proceeding.
-        if short_leg in market_data and long_leg in market_data:
-            short_contract = market_data[short_leg]
-            long_contract = market_data[long_leg]
-
-            # If a contract has no bid -1.0 is returned, set it to 0 to avoid negative mid prices.
-            mid_price_short = (max(short_contract.bid, 0) + short_contract.ask) / 2
-            mid_price_long = (max(long_contract.bid, 0) + long_contract.ask) / 2
-            current_spread_price = mid_price_short - mid_price_long
-
-            if current_spread_price >= stop_price:
-                stopped_out = True
-                logging.info('Stop price reached or exceeded. Exiting trade.')
-
-                short_leg_exit = replace(short_leg, action = BUY if short_leg.action == SELL else SELL)
-                long_leg_exit = replace(long_leg, action = BUY if long_leg.action == SELL else SELL)
-                if long_contract.bid > 0:
-                    exit_order = client.submit_spread_order(short_leg_exit, long_leg_exit)
-                    logging.info('Whole spread exited.')
-                else:
-                    exit_order = client.submit_option_order(short_leg_exit)
-                    logging.info('Short leg only exited.')
-
-                exit_slippage = round(exit_order.fill_price - stop_price, 3)
-                logging.info(f'Exit Slippage: {exit_slippage}')
-
-                update_trade(trade, exit_order)
-
-                # Unsubscribe from market data updates once the trade has exited.
-                for leg in [short_leg, long_leg]:
-                    market_data[leg].updateEvent -= on_market_data_update
-
-    for leg in [short_leg, long_leg]:
-        option_contract = client.get_option_contract(leg)
-        leg_market_data = client.get_market_data(option_contract, streaming = True)
-        market_data[leg] = leg_market_data
-        leg_market_data.updateEvent += on_market_data_update
-
 def enter_iron_condor(entry_time: datetime):
     logging.basicConfig(
         filename = f'iron_condor_{entry_time.strftime("%H%M")}.log', 

monitor_spread.py

@@ -0,0 +1,67 @@
+import logging
+
+from dataclasses import replace
+
+from ibkr import Client, OptionOrder
+from ibkr.order_action import BUY, SELL
+
+from iron_condor_trade import IronCondorTrade
+from trades_table import update_trade
+
+def monitor_spread(trade: IronCondorTrade, spread_order: OptionOrder, client: Client):
+    """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
+        Stop loss orders will not execute if trying to sell back a contract with no bid while paper trading.
+        Therefore, the spread price must be monitored and the spread manually exited if the stop price is reached.
+        If there is no bid for the long leg, only the short leg will be exited.
+    """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
+    stop_price = spread_order.fill_price * trade.stop_multiple
+    stopped_out = False
+
+    short_leg = spread_order.legs[0]
+    long_leg = spread_order.legs[1]
+    market_data = {}  # Stores real-time market data for each leg.
+
+    def on_market_data_update(update_event):
+        # Prevent the trade from being exited multiple times if there are other updates queued.
+        # This will prevent unintentionally entering new trades.
+        nonlocal stopped_out
+        if stopped_out:
+            return
+
+        # Ensure there is market data for both legs before proceeding.
+        if short_leg in market_data and long_leg in market_data:
+            short_contract = market_data[short_leg]
+            long_contract = market_data[long_leg]
+
+            # If a contract has no bid -1.0 is returned, set it to 0 to avoid negative mid prices.
+            mid_price_short = (max(short_contract.bid, 0) + short_contract.ask) / 2
+            mid_price_long = (max(long_contract.bid, 0) + long_contract.ask) / 2
+            current_spread_price = mid_price_short - mid_price_long
+
+            if current_spread_price >= stop_price:
+                stopped_out = True
+                logging.info('Stop price reached or exceeded. Exiting trade.')
+
+                short_leg_exit = replace(short_leg, action = BUY if short_leg.action == SELL else SELL)
+                long_leg_exit = replace(long_leg, action = BUY if long_leg.action == SELL else SELL)
+                if long_contract.bid > 0:
+                    exit_order = client.submit_spread_order(short_leg_exit, long_leg_exit)
+                    logging.info('Whole spread exited.')
+                else:
+                    exit_order = client.submit_option_order(short_leg_exit)
+                    logging.info('Short leg only exited.')
+
+                exit_slippage = round(exit_order.fill_price - stop_price, 3)
+                logging.info(f'Exit Slippage: {exit_slippage}')
+
+                update_trade(trade, exit_order)
+
+                # Unsubscribe from market data updates once the trade has exited.
+                for leg in [short_leg, long_leg]:
+                    market_data[leg].updateEvent -= on_market_data_update
+
+    for leg in [short_leg, long_leg]:
+        option_contract = client.get_option_contract(leg)
+        leg_market_data = client.get_market_data(option_contract, streaming = True)
+        market_data[leg] = leg_market_data
+        leg_market_data.updateEvent += on_market_data_update