The technique offered by the ORATS backtester parameter called 'EntryDays' allows multiple trades to be on at the same time. Staggering trades helps to smooth results especially in options strategies with long days to expiration. For example, if you are testing a long dated put and the stock steadily drifts up before crashing down will have much different results depending when the put trade was entered. This is called a backtest suffering from 'path dependency'.

Select 'EntryDays' and set the number of days you wish new trades to be entered. We use 30 days often but also have used down to 1 day between trades.

Watch the video for a demonstration of this technique:


related posts

Delta Neutral Backtesting, an Example Calculation
Backtesting, Options Strategy

Delta Neutral Backtesting, an Example Calculation

The options trading technique called 'delta neutral' is flattening out a position's delta at a...

Read Post
Option Insider Podcast 74,
Backtesting, Options Strategy, Markets

Option Insider Podcast 74, "Wrap 2018" up on YouTube

Listen to the latest episode of The Advisor's Option, by Mark Longo of the Option Insider,...

Read Post

We're here, if you need us.

Still curious how we can help you?