gujboy75 3 Report post Posted May 10, 2018 Background: I've been trading stocks/options for over 18+ years or so. I have accounts with your regular retail brokers - Etrade etc. My question is, when people say they've done back testing - how are they doing this? Is someone willing to make a video on how to perform back testing? How is this done? What data is needed to perform back testing? Do you need a special service - is it free? What is the cost etc? This is a totally new area for me, but I would like to learn more to help increase my profits and learn from others and mentor others. Thanks. Share this post Link to post Share on other sites
Alex Papas 2 Report post Posted May 10, 2018 You need software with historic option price data for this, eg. ONE (Option Net Explorer). In this you can simulate any trade in the past, choosing enter and exit points (even in 5 minute intervalls). So lets say you establish a specific rule for a trade eg. buy AAPL straddle 5 days before earning announcement. You go back in time, enter the trade and then you forward in time and see what happens. You choose when to exit and the tool tracks performance. You do this for 8 quarters in the past and check total performance to see if this is a high probability trade or not... Hope it helps 1 Share this post Link to post Share on other sites
gujboy75 3 Report post Posted May 10, 2018 2 hours ago, Tniko said: You need software with historic option price data for this, eg. ONE (Option Net Explorer). In this you can simulate any trade in the past, choosing enter and exit points (even in 5 minute intervalls). So lets say you establish a specific rule for a trade eg. buy AAPL straddle 5 days before earning announcement. You go back in time, enter the trade and then you forward in time and see what happens. You choose when to exit and the tool tracks performance. You do this for 8 quarters in the past and check total performance to see if this is a high probability trade or not... Hope it helps Thank you. I'm trying to do it with existing brokers if that is possible like Think or Swim? I'll dig deeper, I'm sure youtube will be helpful Appreciate you steering me in the right direction! Share this post Link to post Share on other sites
Kim 7,943 Report post Posted May 11, 2018 Another tool that many members use: CMLviz Trade Machine There is also huge topic under unofficial trades discussing CMLviz trades. Share this post Link to post Share on other sites
