Written Documentation
Last updated
Last updated
If you prefer written content, this resources website is the place to go. Start with(Backtesting Setup) and go wild!
Also strongly recommended is the the Option Omega Discord server— it has a wealth of written info, including many common questions (and answers!), literally 100’s of community shared tests, a lively group of backtesters, and much more! Here’s aon how to get onto the Discord. (All the action is in the verified channels– so make sure you get verified!)
And of course, the best use of your time is probably to . This will get you up to speed! (Note– the class is free– it does required a login/pw to Academy, which is separate from the login/pw to the OO backtester.
Companion documentation is below.
We’re going to walk you through a simple backtest setup. 2023 has been an interesting market– we’re going to look at a simple 4DTE Friday Put Credit Spread.
We’re going to click on “New Backtest” and setup the first portion like this:
This will give us a test which will is dated the first few months of 2023. We picked a “Short Put Spread”, and changed the legs to sell the 35 delta, 10 wide. We’re going to do a 4 DTE.
In the next section of the backtest setup, let’s change the entry time to 10:00. The other notable change is moving the test to ONLY test Friday’s (since different days perform differently on different tests!). We do this by selecting the frequency dropdown and changing to weekly, then selecting only F.
On the next screen, let’s do both 50% for PT and SL.
Finally, for the Misc section, we have a few things to do here.
Firstly, let’s add some standard commissions in. Also, we’re going to use slippage, to beat up the test a little bit. Finally, we’re going to Cap Profits at our profit target, and require two hits on the PT to execute.
Let’s click run, and we’ll see how it goes!
The backtest results screen gives you a wealth of information about how the test performed.
