Option trading strategy backtesting platforms recommendation

Discussion in 'Options' started by Jeff1228, Oct 5, 2019.

  1. Jeff1228

    Jeff1228

    Hi Option Traders,

    I am going to backtest my option trading strategies but not a coding guy, I am looking for platforms which are easy to use, versatile, having built-in metrics like Sharpe ratio, Sortino, maximum drawdown, win ratio, etc. and be able to access the historical data. Any recommendations, with the pros and cons, are welcome.

    Thank you!
     
    Matt_ORATS likes this.
  2. ET180

    ET180

    ThinkOrSwim is the only platform that comes to mind that has historical options data.
     
  3. easymon1

    easymon1

    thanks et180, i had no idea. beauty
     
  4. trader99

    trader99

    easymon1 and ZBZB like this.
  5. You might want to also try eDeltaPro
     
    ZBZB likes this.
  6. KeLo

    KeLo

    OptionVue, maybe LiveVol.
     
  7. Matt_ORATS

    Matt_ORATS Sponsor

    Hi Jeff, my firm ORATS offers an online backtesting platform that meets your specifications.

    Pros:
    Flexibility: From Long Stock to Iron Condors, from combining strategies to using triggers to trade, the backtester can test the vast majority of ideas we have heard in 10 years of backtesting.
    Depth and Quality Data: All US equity options symbols back to 2007 including indexes SPX and VIX, with quality ORATS smoothed greeks and data cleaning.
    Trade Triggers: Enter or exit your trades based on earnings dates, technical indicators, options indicators, profit stop loss/gain, spread price percent of strike width reached, and many more.
    Backtest Report: Features annualized returns, Sharpe, Sortino, win%, best/worst month/year, and the ability to download trades and results.
    Scan Integration: Once you have a backtested strategy, you can scan to find options meeting your entry or exit criteria in the market.

    Cons:
    We do not offer intraday data. We use near end of day data, snapped at 14-minutes before the close to backtest.

    We offer special pricing to EliteTrader users that is 50% off our normal $99 per month here.
    If you need help or want to see a sample of our backtester on your strategy post here or email me at matt@orats.com.
     
  8. Jeff1228

    Jeff1228

    Thank you all for the comments, definitely will check all of the resources out, hope more comments coming in.
     
  9. rtw

    rtw

    i have looked for a long time but never found a platform that could backtest - optimize strategies that were based on rules derived from indicators (for example, if price at close > sma (9) buy one call) on positions in options. what i do is approximate as best as i can what the performance would have been in positions in options from positions in 100 shares that platforms like ninjatrader or tradestation can indeed process. there are platforms like cmlviz to backtest other kind of strategies like buying or selling options a number of days before earnings announcements but i wouldn't recommend neither the platforms nor the strategies.

    anyway, the people at projectoption have solved this issue. they have a number of videos on their youtube channel where they explain which options strategies work (mostly selling strategies). i have asked and they told me they couldn't find a platform for the backtests they wanted to perform so they had to code everything into python themselves.
     
  10. TastyTrade has tons of free original educational and research material -- so why pay the 'middleman' when you can get it directly and free from the source?
     
    #10     Oct 6, 2019
    Bobiz likes this.