What is Option Backtesting?

Option backtesting is very similar to stock backtesting, except that it tests a chosen set of criteria for trading options. Like with stock backtesting, you also get detailed reports consisting of executed trades, drawdown, risk-reward ratio, compounded return, winning percentage, and more.

Options backtesting is a great way to estimate the performance of your option trading strategy and ensure that you implement the correct strategies with real money so that you can make informed decisions. To test option strategy, you can use reliable testing backtesting software to find the best option trading strategy for you.

By S A Barbhuiya

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