Backtesting Options Trading Strategies

It is a relatively simple matter to backtest a strategy trading price-based expectations: a little spreadsheet know-how or, failing that, any of the scores of software packages now on offer will get the job done. But testing the historical performance of well-defined options strategies involves much more complexity, and imposes significantly greater data requirements. The difference between stocks/futures/forex and options is so great, in fact, that no retail platform today offers a straightforward way to run thorough tests of quantitative or mechanical options strategies. Even if there were such a trader-friendly platform, the analytical skills required to find a statistically significant edge aren’t always the same skills that most traders possess.

Condor Options Research Services meets this need. We backtest options trading strategies, optimize existing strategies, and construct portfolio hedging strategies to match your goals and risk tolerance. In addition to running the numbers on a set of strategy rules, we will work with you to clarify and define your parameters and will publish a detailed final report covering performance metrics, methodology, execution and other relevant topics. Visit the dedicated service page for more information.

This is the first service of its kind. If you’ve always wondered what would happen if you combined your favorite market indicators with the flexibility and power of options trading, contact us to discuss your project and get a free quote.