How to Backtest Your Options Strategies with Tastytrade

RediksiaFriday, 5 January 2024 | 06:45 GMT+0000
How to Backtest Your Options Strategies with Tastytrade
How to Backtest Your Options Strategies with Tastytrade

DIKSIA.COM - Are you looking for a way to test your ideas before putting real money on the line? Do you want to see how your would have performed in the past and how they are likely to perform in the future? If so, you might be interested in 's feature, a powerful and free tool that lets you backtest your with historical data and trade simulation.

What is tastytrade?

is an online financial network that provides educational and entertaining content on , investing, and personal finance. Tastytrade also offers a brokerage platform called tastyworks, where you can execute your options trades with low commissions and fees. Tastytrade's mission is to empower individual investors to take control of their financial future and trade with confidence.

What is lookback?

is a new feature on tastytrade that allows you to backtest your options strategies with historical data and trade simulation. Lookback lets you simulate any options strategy, real or imagined, with a near unlimited number of legs matching the delta of the legs of your simulated positions. You can choose from over 2,000 symbols with between 12-15 years of history and see how your strategy would have performed in different market conditions. You can also see your win rate, total number of trades executed, average profit per trade, and more.

How to use lookback?

To use lookback, you need to have a tastytrade account and log in to the website. Once you are logged in, you can access lookback from the top menu bar or from the link here. You will see a page like this:

On this page, you can enter the symbol of the underlying asset that you want to trade options on, such as SPY, AAPL, or TSLA. You can also choose the expiration date, the strike price, and the type of option (call or put) for each leg of your strategy. You can add or remove legs as you wish, and you can also adjust the quantity and the price of each leg. You can also choose to enter a custom delta for each leg, or let the system calculate it for you based on the current market price.