Backtesting
Monday, October 7th 2019
Pros and Cons of the ORATS Backtester
The ORATS backtester offers a flexible, easy to use, powerful way to test and implement your options strategies.
Summary
The ORATS backtester offers flexibility, ease of use, quality data, trade triggers, and a backtest report. However, it does not offer intraday data. ORATS aims to be the premier place to research, backtest, implement, and maintain options strategies that meet investor objectives.
We were asked, "What are the pros and cons of your backtesting service?"
Flexibility: From Long Stock to Iron Condors, from combining strategies to using triggers to trade, the backtester can test the vast majority of ideas we have heard in 10 years of backtesting.
Ease of Use: You do not need to be a coder to fire up our backtester and get results (although our Backtester has an API for programmers). A backtest is easy to set up and quick to run. We are very active on our blog and have great knowledge base there.
Depth and Quality of Data: All US equity options symbols back to 2007 including indexes SPX and VIX, with quality ORATS smoothed greeks and data cleaning.
Trade Triggers: Enter or exit your trades based on earnings dates, technical indicators, options indicators, profit stop loss/gain, spread price percent of strike width reached, and many more.
Backtest Report: Features annualized returns, Sharpe, Sortino, win%, best/worst month/year, and the ability to download trades and results.
Scan Integration: Once you have a backtested strategy, you can scan to find options meeting your entry or exit criteria in the market.
We do not offer intraday data. We use near end of day data, snapped at 14-minutes before the close to backtest.
Our mission at ORATS is to be the premier place to research, backtest, implement and maintain options strategies that meet investor objectives.
A large part of our mission is to provide a state of the art backtester. Moreover, when a suitable backtest is found, the integration with our scanner helps to enter and exit trades, critical for implementing an options strategy.
What do you think? We would love to hear from you and, if you have not yet, you can try the backtester here for 14-days free (requires a credit card but you will be alerted before going live on your subscription).
Disclaimer:
The opinions and ideas presented herein are for informational and educational purposes only and should not be construed to represent trading or investment advice tailored to your investment objectives. You should not rely solely on any content herein and we strongly encourage you to discuss any trades or investments with your broker or investment adviser, prior to execution. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. Option trading and investing involves risk and is not suitable for all investors.
All opinions are based upon information and systems considered reliable, but we do not warrant the completeness or accuracy, and such information should not be relied upon as such. We are under no obligation to update or correct any information herein. All statements and opinions are subject to change without notice.
Past performance is not indicative of future results. We do not, will not and cannot guarantee any specific outcome or profit. All traders and investors must be aware of the real risk of loss in following any strategy or investment discussed herein.
Owners, employees, directors, shareholders, officers, agents or representatives of ORATS may have interests or positions in securities of any company profiled herein. Specifically, such individuals or entities may buy or sell positions, and may or may not follow the information provided herein. Some or all of the positions may have been acquired prior to the publication of such information, and such positions may increase or decrease at any time. Any opinions expressed and/or information are statements of judgment as of the date of publication only.
Day trading, short term trading, options trading, and futures trading are extremely risky undertakings. They generally are not appropriate for someone with limited capital, little or no trading experience, and/ or a low tolerance for risk. Never execute a trade unless you can afford to and are prepared to lose your entire investment. In addition, certain trades may result in a loss greater than your entire investment. Always perform your own due diligence and, as appropriate, make informed decisions with the help of a licensed financial professional.
Commissions, fees and other costs associated with investing or trading may vary from broker to broker. All investors and traders are advised to speak with their stock broker or investment adviser about these costs. Be aware that certain trades that may be profitable for some may not be profitable for others, after taking into account these costs. In certain markets, investors and traders may not always be able to buy or sell a position at the price discussed, and consequently not be able to take advantage of certain trades discussed herein.
Be sure to read the OCCs Characteristics and Risks of Standardized Options to learn more about options trading.
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