For this backtest, we’re going to select QQQ as the ticker to test, and we are going to backtest a double calendar. We’ll be backtesting selling a call & put at 3 DTE, and buying the same strikes at 5 DTE. These backtests simulate a more complex style trade, with the Greeks (and legs of the trade!) going multiple directions!
Let’s enter Friday mornings at 9:45. (Reminder, to select Friday just click Weekly=> F on the frequency dropdown.
Our PT will be 30%. We’re not going to set a stop loss right now (more on that later). We’re also going to use a profit action—this simulates scaling out of a trade. At 20% profit, we’ll close half the position.
Now, let’s look at the exit conditions.
Instead of using a SL, we’ll have an early exit. Additionally, we’ll put some guide-rails around movement, in this case exiting the trade if the short leg (either put or call) goes 1 “past” (-1 in the below fields) on the underlying QQQ.
Finally, we’ll add some “standard” misc options, including slippage, commissions and more, as below!
Then we’ll run the test!
Now, let’s save the backtest.
Once we’ve named and saved the backtest, we can now something neat– we can run a portfolio of multiple tests!
Now that we have 2 backtests saved, let’s click, Portfolio= > New Portfolio
We’re going to select both tests—and run them at a 20% allocation, over the last 90 days. Note—with portfolio, the dates you select in the portfolio screen, as well as allocation and max contracts, will OVERRIDE the test conditions.
And there you go—your first portfolio! It’s no problem to combine tickers, different styles, etc. of backtests in a portfolio.
We’ll take this backtest we just created () and make sure its saved. Let’s make sure we have this backtest ()– this is an additional backtest from a tutorial. (If somebody shares you a link like this, just click “New Backtest” and run the backtest yourself—you can then save or modify it however you would like!)
As always, we have plenty more resources on our
This , and here’s .
