Have a fairly simple strategy I would like to backtest. How can I find someone with a database and know how to do it for me? Fivrr?
What kind of asset class and/or timeframe you need to backtest ? Do you need backtesters without coding ability ? You can search yourself if you want that on that page with a very good overview what is available on the market HERE: https://quantpedia.com/links-tools/?category=backtesting-software
Since this was posted in Options, https://orats.com/blog/best-options-backtesting-platforms-in-2024 Best Options Backtesting Platforms in 2024
I didn't like the choices available so I got a developer to help me write the code, back end, data feed etc., 2 years later and 5+ figures later I have what I consider better than anything available off the shelf to retail traders... Probably entry level at best for professional trading firms though. Options Omega looks okay these days. I'll run your strategy for free if I have the data, I've pretty much tested anything you can think of at this point. If it involved up to 8 legs and various entry/exit or even scaling criteria.
I do have that data. What exactly do you mean by 'with a hedge?' -buy call options 365+ days out and ? Even if you do find something in the Backtester btw getting fills is going to be a crusade and you have to deal with all the reverse splits which will all but kill any liquidity you'd want to get out. It's kind of a trap.
Ok, let’s try this. let me know If possible and or problems. https://www.reddit.com/r/options_backtesting/s/Rg4erL0UPV
Here is the content I liked to explaining the trade: The strategy is to short UVXY by buying atm LEAPS puts on first day of issuance, hold until expiration or sell the day before a reverse split of the underlying. My hedge is buying 50% of the amount spent on puts to buy the UVXY LEAPS atm calls on day of issuance and sell on spike of the underlying by 50% or roll after one year to the next series. So how would this long LEAPS hedged semi-straddle have performed?
Does 50% of amount refer to qty or dollars? Assuming quantity, if UVXY is at $10, buy (2) $10 strike put out 1 year for about $37 each ($72 total), and buy (1) $10 strike call out 1 year for about $60. Spread is 100% long and costs a little more than (+7%) the same amount as 100 shares of underlying. It shows a net loss of about 60% of your debit without any slippage or spread losses - getting fills in this many contracts will probably cost another 20-40% loss. Monte Carlo and sizing only paint a worse picture so we won't go there for now. I ran a simulation with 50 contract matches at the ~6month DTE side. Note this is heavily biased due to COVID and the removals of split trading time frames in my version of a Backtest. I believe COVID really changed the profit much more towards the win side and if such swings persist then UVXY options IV (similar to VVIX) will just ensure you pay more for this half straddle. I have some thought but hear me out I'm going to try to explain a few different ways to see if you can identify a useful thought from me: It's not a seemingly good trade in itself, but for reasons I don't get to talk about often. The main thing is what I said above, I think this trade has its own Volatility of Volatility (VoV) to deal with. In a weird way I think you'll end up having created a sort of UVXY of your own, more based on VoV, so it has a sort of muted behavior. Iike VVIX It might be desirable to trade itself because of the extreme mean reverting properties. Is there any way you can think to trade... The derivative of this idea? Side note, leaps on vol products look unintuitively cheap as if they aren't pricing in the expected decay of the ETF. I'm still figuring this one out. When I looked deeper into it, it seems to be VoV. The expected move is not always going to fall in a perfect year of 83% decay or whatever. The leap may land on a bad year like COVID when it could have been up 500%. So that pulls the expected value of the put side down, and the call side goes up. You end up with extreme call skew. So why not buy the cheaper put? If the put is 50% of the UVXY price but we expect 83% decay on average, why can't we profit? Well you can, it's just the median that tracks to 83% decay. The reality causes about a pull up of about 2/3 what you'd actually gain. Options and behavior are all very unusual (and beautiful) with UVXY. I used to describe it as this thing that built up pressure and let it go and I know it to be true in a different way and 20 years later. Also hink about how you would price it if you are a market maker too if you want some insights. You want to be near $0 average. But you can't guess where average is because there's is only so much history and when events do happen they massively bias the historical data. This uncertainty (low sample size) is exactly what leads to high Bid-ask spread as the MM is expressing their risk tolerance and predictive strength.