It is a question many options traders have struggled with: How do we know when our strategy has lost its trading edge?

The question was also asked during our recent Theta LIVE about 0DTE trading. Here is an edited excerpt video with what our 0DTE experts answered.

Learn about spotting when your trading edge is gone

The video was produced with Streamyard – an easy-to-use and amazing tool for live streaming and recording.

Three 0DTE experts

This excerpt features three seasoned retail options traders:

• Tammy Chambless – the “Queen of 0DTE,” known for her MEIC (Multiple Entry Iron Condors) strategy.
• Dale Perryman – trader and educator with a focus on structured approaches like the Iron Fly.
• Mark Anderson – experienced options trader who emphasizes backtesting, walk‑forward analysis, and systematic discipline.

The big question: When is the trading edge gone?

The panel was asked a question that every 0DTE trader wrestles with: “When would you consider the edge is gone and no longer run a strategy?”

Tammy Chambless: Track results against history

Tammy explained that she continuously compares her live trading results with long‑term averages and backtests. If her win rate or gains drop significantly, she reduces position size and reevaluates. She shared that she once abandoned a morning entry strategy after months of consistent losses, a reminder that sometimes strategies truly stop working.

Mark Anderson: Beware of false edges

Mark warned that many so‑called strategies never had a real edge to begin with. Filters and curve‑fitting can create illusions of profitability. He recommends walk‑forward testing with out‑of‑sample data to ensure results are robust. For him, a true edge must be validated across time, not just in one market phase.

Dale Perryman: Classify your playbook

Dale uses a simple framework: A‑game, B‑game, C‑game. His A‑game setups are always in play, B‑game trades are situational, and C‑game strategies get cut. If something drifts into “C‑game” territory, he removes it from his playbook — sometimes due to market changes, sometimes due to exchange rule changes.

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Mindset: Handling stress and losses

The conversation shifted from a technical evaluation to the mental aspect of trading.

• Dale stressed that mindset comes from routines and discipline. He avoids getting too high on wins or too low on losses, trusting his rules and backtesting.
• Tammy added that she doesn’t judge success by daily results. For her, the real measure is whether she followed her rules. A losing day with discipline is not a failure — it’s part of the probabilities of trading.

Both panelists agreed: Mindset is about separating emotions from execution.

Key lessons for 0DTE traders

• Monitor continuously – compare live results to backtests and long‑term averages.
• Validate with robust testing – avoid curve‑fitted strategies by using walk‑forward analysis.
• Have a playbook – keep your A‑game trades, drop the C‑game setups.
• Trust the rules – success is defined by discipline, not a single trade’s outcome.
• Stay consistent – routines and risk controls are the foundation of survival in 0DTE.

Other videos about 0DTE options trading

• Mark Anderson: 0DTE options trading: Five essential tips from a hedge fund pro
• Tammy Chambless: 0DTE options trading for beginners
• Dale Perryman: 0DTE Iron Fly on SPX
• John Einar Sandvand: The best way to set a stop-loss on credit spreads in 0DTE options trading
• David Berndsen: Here is a consistently profitable 0DTE Iron Condor strategy