Backtesting Introduction

There are entire books and excellent blog posts dedicated to backtesting. I won't regurgitate the content from these resources, however I would like to add some context to this project. I will review some of the basics of backtesting touch on points that will become important as I build the options backtesting system.
Continue reading

Backtesting Options Trading Strategies

Backtesting a trading strategy is critical in trading. Countless blogs, books, and papers discuss the art of backtesting. Most of these focus on equity and futures markets using off-the-shelf software like Trade Station. There are an equal number of discussions on the trade-off between buying off-the-shelf software and writing your own. What seems to be less discussed is backtesting options trading strategies. There are of course notable exceptions but in large, there's not much.
Continue reading