Get started backtesting options strategies and improve your options knowledge. You will get a feel for what works, what is too risky for you, and ultimately what you want from options trading.

Backtesting will help you define your goals, choose your strategies, and set your risk tolerances.

Take, for example, the following trading strategies in the popular ETF on the S&P500 SPY. Using the ORATS Wheel system for backtesting options, we have compiled a quick list of  strategies.

What looks best for YOU of these popular strategies?

Note: these returns are based on notional or stock price as the denominator. The rules for the strategies can be seen in the links below.

Short Strangle (unlimited losses to upside and downside)

Short Put (bullish, unlimited losses downside)

Short Put Spread (bullish, limited losses downside)

Iron Condor (limited losses to upside and downside)

 

 

related posts

Backtests Basics: How to Use Technical Indicators
May
20
Backtesting, Options Signals, technical indicators

Backtests Basics: How to Use Technical Indicators

You can use technical indicators to drive when an options trade is entered and exited. ORATS has...

Read Post
Backtest Basics: Edit a Backtest
May
18
Backtesting, covered call

Backtest Basics: Edit a Backtest

A quick way to make a small change to an existing backtest is using the Edit button that appears...

Read Post

We're here, if you need us.

Still curious how we can help you?




LET'S CHAT