Notes on testing options strategies
- How traders accidentally overfit an options strategy
Learn how repeated tuning can fit market noise and how holdout periods, simple rules, and parameter checks improve a backtest.
Xavi · · Part 6
- From backtest to paper trading to live
Use paper trading to test strategy behavior and broker workflow before making a separate decision about live risk.
Xavi · · Part 7
- Stop asking whether the backtest made money
Go beyond total return and win rate. Learn how to inspect expectancy, drawdown, trade distribution, costs, and individual losses.
Xavi · · Part 5
- Could your account have taken those trades? Margin in options backtesting
StratVerra checks modeled margin before accepting backtest orders. See how capital constraints, rejected orders, and peak margin affect your results.
Xavi ·
- The fill-price problem: slippage, spreads, and commissions
Learn why midpoint fills can flatter an options strategy and how to stress-test spreads, slippage, and commissions.
Xavi · · Part 4
- Your options backtest is only as honest as its data
See how data frequency, option-chain history, missing quotes, and timing assumptions can change an options backtest.
Xavi · · Part 3
- Before you backtest, make the strategy precise
Learn how to define entry, contract selection, size, exits, and execution assumptions before backtesting an options strategy.
Xavi · · Part 2
- What an options backtest can tell you (and what it can't)
Learn what an options backtest can reveal, where simulations fall short, and which questions to ask before risking capital.
Xavi · · Part 1