0DTE trading strategies have gained massive popularity in recent years, but few traders can boast results as impressive as Nick Magno, a physician and retail trader from Pennsylvania, USA. In this interview, Nick reveals how he more than doubled his account in 2024 by finding his way of trading 0DTE Iron Condor on SPX.
Watch the interview with Nick Magno here
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0DTE Iron Condor strategy: Risk Tolerance Sequence (RTS)
Nick’s approach, which he calls Risk Tolerance Sequence (RTS), builds on the fundamentals of the breakeven iron condor trading style, such as my own 0DTE Breakeven Iron Condor´strategy or the more disciplined Multiple Entries Iron Condors (MEIC) advocated by Tammy Chambless. This trading style tries to get the same premium on both sides of the iron condor – and sets the stop loss on each side separately equal to or a bit less than the total premium.
Nick introduces strategic sequencing to manage risk and maximize returns. He has given his version the name Risk Tolerance Sequence (RTS).
Here’s are his RTS trading rules:
Trade entry timing: Nick typically begins trading from around 10:30 AM EST, depending on market conditions. He avoids trading before major news events, such as FOMC announcements.
Target premiums: Nick looks for a total credit of $2.60 to $3.20 per iron condor, with equal premiums on both sides. At the end of the day he may reduce it to 1.6.
Spread width: While not a hard rule, he generally uses spreads between 25 and 60 points wide.
Stop losses: Each side of the iron condor has separate stop losses, typically set at a little less than the total premium value to keep trades close to breakeven.
Sequential trades: Nick enters new trades only when specific conditions are met:
- The total value of the previous trade drops significantly – for instance if a 3.0 credit is below 1.5. .
- One side of the previous trade hits a stop loss, and the remaining side drops below $0.50 in value.
- If a double stop-out occurs early, he may reenter another trade immediately, provided he’s within his daily loss limit.
Risk management: Nick caps his daily loss at 3% of his account but aims to stay within a 1–2% loss limit on most days. New trades are only entered if this limit is not breached.

Why this way of trading 0DTE Iron Condor works
RTS is designed to minimize the number of double stop-outs and prevent overtrading. By waiting for previous trades to stabilize or reach a safer state, Nick avoids compounding losses and maintains a disciplined trading approach.
Nick started 2024 with $30,000 in his trading account and ended the year with $64,000—an astonishing 113% return in one year. While he acknowledges that these results may not scale perfectly with larger account sizes, his disciplined risk management and consistent strategy proved effective for him.
How Nick balances trading with a busy lifestyle
As a full-time physician, Nick doesn’t have the luxury of sitting at a trading desk all day. Instead, he trades on the go, often placing trades during short breaks between seeing patients. Here’s how he manages his trading:
- Trading platform: Nick uses Thinkorswim Mobile, which allows him to monitor and execute trades quickly.
- Alerts and automation: He sets alerts to his watch for significant market movements, ensuring he can react promptly even during a busy day.
- Simple rules: By sticking to clear entry and exit criteria, Nick avoids emotional trading and decision fatigue.
- Loss control: His focus on limiting losses ensures that even on bad trading days, his account remains intact.
Who is RTS best suited For?
According to Nick, RTS is ideal for traders who:
- Want a structured, disciplined approach to 0DTE trading.
- Prefer a manageable number of trades per day (typically three to five).
- Are comfortable with a moderate risk profile (he rates RTS a 5 out of 10 on the risk scale).
- Value minimizing losses over chasing high-risk gains.