Backtesting is a great way to see how a strategy performed historically. The ORATS Wheel helps you to backtest your strategy. Here we backtest a four leg Iron Condor strategy for SPY.
- Sign up and request your user key here: wheel.orats.com
- Choose the button ‘New Backtest’
- Symbol type ‘SPY’ and dropdown menu choose Iron Condor.
- Press the SUBMIT button.
- In My Backtests your strategy will say ‘processing’
- Once complete, click on the strategy link and view the report. The SPY:IronCondor has a 2.39% return with the stock price as the denominator.
- Adjust the strategy. Let’s test selling a two week Iron Condor. Edit the strategy and change Days to expiration (dte) new min,max around 14 days become 8,20.
- The SPY:IronCondor has a -0.70% return, worse than the 2.39% return so we might prefer the original days to expiration.