#option backtesting

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[algos11]

Algorithmic trading has become a popular trend in financial markets, especially in India due to its fast-paced nature. It involves the use of technological and automated systems to place trades on behalf of a trader with the help of certain predetermined conditions, which helps the trader improve his trading strategies. However, not all those who engage in algorithmic trading do achieve the intended success. Some algorithmic traders succeed while others do not, and these differences can be attributed to the differences in their approaches and knowledge of the market. This blog discusses some of the key attributes and practices that one needs to know when answering the question of how to become an algo trader who is successful. 

[optionbacktestingsoftware]

Top Backtesting Software for Options Trading Strategies

Backtesting Software are required for successful options trading because incorrect decision may lead to loss. Find here Best Options Backtesting Software. Due to this vulnerability, traders use trading strategies based on various standards and guidelines that correspond to the demands and objectives of the market. Before entering the market, they experiment with several strategies.

[beststockadvisoryinindia]

Top Backtesting Software for Options Trading Strategies

Backtesting Software are required for successful options trading because incorrect decision may lead to loss. Find here Best Options Backtesting Software. Due to this vulnerability, traders use trading strategies based on various standards and guidelines that correspond to the demands and objectives of the market. Before entering the market, they experiment with several strategies.

[tradingscriptsandstrategies]

Binary Option Ultimate Backtester-V.1

The Binary Option strategy backtester gives the user extensive power to test any kind of strategy with advance trade management rules. The strategy tester accepts external scripts as strategy sources. You can add your strategy and test it for historical stats. Few assumption regarding strategy tester:

We are opening position at next candle after signal come

We are taking the position at opening price

Our call will be profitable if we get a green candle and put will be profitable if we get a red candle

We can open only one trade at a time. So if we are in trade, subsequent signals will be ignored.

How to make your strategy code compatible for strategy backtesting? In your strategy code file add following lines: Signal = is_call ? 1 : is_put ? -1 : 0 plot(Signal, title="🔌Connector🔌", display = display.none) Is_call and is_put is your buy and sell signal. Plot the signal without displaying it in the chart. The new TradingView feature display = display.none, will not display the plot.

All Input options Group: STRATEGY Add Your Binary Strategy: External strategy to back test. Trade Call/Put: Select CALL, to trade Call, PUT, to trade Put. Default is BOTH, Trading Call and Put both. Number of Candles to Hold: How many candles to hold per trade. Default 1. If you want to hold the option for 30 minutes and you are testing your strategy in 15m intervals, use 2 candle holding periods.

GROUP: MARTINGALE Martingale Level: Select up to 15 Martingale. Select 1 for no Martingale. Use Martingale At Strategy Level: Instead of using Martingale per trade basis, using Martingale per signal basis. Like if we make a loss in the first signal, instead of starting martingale immediately we’ll wait for the next signal to put the martingale amount. For example if you start with $1 and you lose, at the next signal you will invest $2 to recover your losses. Strategy Martingale Level: Select up to 15 Martingale at strategy signal level. Only workable if Use Martingale At Strategy Level is selected. Type of Trade: Martingale trade type. Only workable if we are using Martingale Level more than 1. It can be: “SAME”:If you are trading CALL and incur a loss, you are taking CALL in subsequent Martingale levels. “OPSITE”: if you are trading CALL and incur a loss, you are taking PUT in subsequent Martingale levels. “FOLLOW CANDLE COLOR”: You are following candle color in Martingale levels, i.e if the loss candle is RED, you are taking PUT in subsequent candles. “OPPOSITE CANDLE COLOR”: You are taking opposite candle color trade, i.e if the loss candle is RED, you are taking CALL in subsequent candle.

GROUP: TRADE MANAGEMENT Initial Investment Per Option: Initial investment amount per trade Payout: Per trade payout in percentage Use Specific Session: Select to test trade on specific session. Trading Session: Select trading session. Only workable if Use Specific Session is selected. Use Date Range: Select to use test trades between dates. Start Time: Select Start Time. Only workable if Use Date Range is selected. End Time: Select end Time. Only workable if Use Date Range is selected. Early Quit: Select to quit trade for the day after consecutive win or loss Quit Trading after Consecutive Win: Number of consecutive wins. Only workable if early Early Quit is selected. Quit Trading after Consecutive Loss: Number of consecutive losses. Only workable if early Early Quit is selected. Buy/Sell Flip: Use buy signal for sell and sell signal for buy.

GROUP:STATS Show Recent Stats: Show win trades in last 3,5,10,15,25 and 30 trades. Show Daily Stats: Day wise win trades and total trades. Show Monthly Stats: Month wise win trades and total trades.

Result and stat output:

Back tester without any strategy.

Strategy added with default option.

Stats with 7 Martingales. You can test up to 15.

Optional Stats:

[optionsbacktestingsoftware]

Are you thinking of Investing in Debt Mutual Funds.? If yes then read the article to understand what a Debt Mutual Fund is, its types and debt securities. When investing in debt mutual funds, you need to understand your portfolio. To do this, it is important to understand the different types of debt securities a debt mutual fund purchases in its portfolio. Let’s understand these.

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Best Options backtesting Software - Provides fully automated pre-programmed trading systems that are completely customizable to your investment approach. This back-testing software can also be used to find out how different strategies would have performed if applied over some historical data. Find here Best Options Backtesting Software.

[beststockbroker]

Starting your investment journey; you must consider these stocks

Beginner investors should aim to maximize their investments as they have time on their side. For novices, the Indian Stock Market is the best to begin investing. However, for those who are not aware of the market, the best stock advisor in India can guide them efficiently in the process. The advisors enable them to invest in businesses that offer goods or services they can directly utilize. It means that you may still profit from stock investments even if you are not a finance expert.

[alogoji1]

Algo trading | Tradingview algo trading | Algoji

In the dynamic world of financial markets, staying ahead of the curve requires the right tools and strategies. Algo trading, or algorithmic trading, has revolutionized the trading landscape by enabling traders to execute orders with speed and precision that surpasses human capabilities. TradingView, a leading platform for charting and analysis, further enhances the trading experience with its robust features. Combining the power of algo trading with TradingView, Algoji stands out as a premier solution for traders looking to optimize their strategies and achieve consistent success. In this blog, we will delve into the benefits of algo trading and TradingView, and how Algoji can help you master both.

Understanding Algo Trading

Algo trading involves using computer programs to execute trades based on predefined criteria. These algorithms analyze market data, identify trading opportunities, and execute trades at speeds that human traders cannot match. The main advantages of algo trading include:

Speed and Efficiency: Algorithms can execute trades in milliseconds, capturing opportunities that might be missed by manual trading.

Precision: Automated trading reduces human errors, ensuring that trades are executed exactly as intended.

Backtesting: Traders can test their strategies against historical data to refine and optimize their approach before going live.

Emotion-Free Trading: Algorithms follow predefined rules, eliminating emotional biases from trading decisions.

24/7 Trading: Algorithms can operate around the clock, ensuring continuous market engagement.

Why TradingView?

TradingView is renowned for its advanced charting capabilities, user-friendly interface, and a vibrant community of traders. Here’s why TradingView is a favorite among traders:

Comprehensive Charting Tools: TradingView offers a wide range of chart types, indicators, and drawing tools to help traders analyze market trends and make informed decisions.

Real-Time Data: Stay updated with real-time data and alerts, ensuring you never miss a trading opportunity.

Community and Collaboration: Engage with a global community of traders, share ideas, and gain insights from other experts.

Customization and Flexibility: Customize your trading charts and interface to suit your trading style and preferences.

Introducing Algoji: The Perfect Synergy of Algo Trading and TradingView

Algoji seamlessly integrates the power of��algo trading with the advanced features of TradingView, providing traders with a comprehensive solution for optimizing their trading strategies. Here’s how Algoji can transform your trading experience:

1. Advanced Algorithm Development

Algoji offers an intuitive platform for developing sophisticated trading algorithms. With a wide range of technical indicators and customization options, you can create strategies tailored to your unique trading style. Whether you are a technical analyst or a quantitative trader, Algoji provides the flexibility and power you need.

2. Real-Time Market Insights

Stay ahead with Algoji’s real-time data and analytics. The platform provides detailed market analysis, helping you make informed decisions based on the latest trends. Real-time insights enable you to adapt quickly to market changes and seize opportunities as they arise.

3. Seamless Execution Automation

Algoji integrates seamlessly with TradingView, allowing you to automate trade execution based on predefined rules. This reduces manual errors, minimizes latency, and improves execution efficiency. Set your strategies to execute trades automatically, ensuring timely and accurate order placement.

4. Robust Risk Management

Protect your capital with Algoji’s advanced risk management features. The platform allows you to set risk controls, implement stop-loss orders, and manage position sizes to optimize risk-adjusted returns. Effective risk management is crucial for long-term trading success, and Algoji provides the tools you need to safeguard your investments.

5. Comprehensive Support

Algoji’s dedicated support team is always ready to assist you. From onboarding to technical guidance, Algoji ensures you have all the resources you need to succeed in algo trading. The platform also offers educational resources and community engagement opportunities to enhance your trading knowledge and skills.

Getting Started with Algoji

Whether you’re new to algo trading or an experienced trader seeking advanced solutions, Algoji makes it easy to get started:

Sign Up: Create an account with Algoji and explore the platform’s features.

Develop Your Strategy: Use Algoji’s advanced tools to develop and backtest your trading strategies.

Automate Your Trades: Integrate your strategies with TradingView and automate the execution process.

Monitor and Optimize: Use real-time analytics to monitor your strategy’s performance and make necessary adjustments for optimal results.

Engage with the Community: Join Algoji’s community of traders, participate in educational events, and stay updated with industry trends to continuously improve your trading knowledge and skills.

Conclusion

In the competitive world of financial trading, having the right tools can make all the difference. Algoji, with its seamless integration of algo trading and TradingView, offers the advanced features, real-time insights, and comprehensive support you need to succeed. Whether you’re a seasoned trader or just starting, Algoji empowers you to harness the power of algorithmic trading and achieve your trading goals.

[harbourfronttechnologies]

Reexaming the Performance of Passive Options Strategies

Reexaming the Performance of Passive Options Strategies More than 40 years ago, Merton et al. published two papers [1,2] examining the performance of passive options strategies. They concluded that these strategies outperformed the traditional buy-and-hold approach. At the time of their studies, options data was not widely available, so they used historical volatility to calculate options prices. Merton et al. conducted their research by simulating the impact of options on two portfolios: a broad market proxy of 136 equities and the Dow Jones 30 index. Using a twelve-year period, the backtest incorporated historical volatility and applied the Black–Scholes-Merton model to price the options. Since then, the options market has become highly liquid, with significant structural changes. A recent article [3] reexamines the strategies studied by Merton et al., along with additional strategies, using actual options data from the period 2012 to 2023. The strategies studied include Call-Write strategies (with seven variants), Put-Write strategies (with two variants), and the Protective Put (PPUT) strategy. The authors pointed out, The recent review shows that the original option strategies recommended by Merton et al. no longer provide a favorable return-to-risk ratio. It is likely that these returns were illusory, driven by their assumptions. After all, they were based on a simulation. Recent data demonstrate that simple options strategies no longer add value to a portfolio or an index. However, our research shows that three well-known and somewhat dynamic option strategies have outperformed the S&P 500 Index on a return-to-risk basis. Furthermore, we find that the favorable performance observed in previous studies can be revitalized by incorporating simple signals of the market regime in their construction. An interesting finding of this study is that PPUT consistently outperforms the S&P 500 Index on a return-to-risk basis. Even more astonishing is that by adding the simple logic of avoiding puts after a one-standard-deviation draw down, it outperforms the index on a return basis with significantly lower risk. A key reason for the PPUT index and the logic-based PPUT strategy outperformance may be that as more firms implement covered call strategies, they inadvertently reduce implied volatility levels, underpricing the risk in the tails of the distribution. This hypothesis needs to be tested with a larger set of indices. In short, none of the simple options strategies have outperformed the S&P 500. Interestingly, the PPUT strategy outperforms the buy-and-hold approach on a risk-adjusted basis, and the VIX is shown to be an effective regime filter. Let us know what you think in the comments below or in the discussion forum. References [1] Merton, Robert C., Myron S. Scholes, and Mathew L. Gladstein. 1978. The Returns and Risk of Alternative Call Option Portfolio Investment Strategies. Journal of Business 51: 183–242. [2] Merton, Robert C., Myron S. Scholes, and Mathew L. Gladstein. 1982. The Returns and Risks of Alternative Put-Option Portfolio Investment Strategies. Journal of Business 55: 1–55. [3] Andrew Kumiega, Greg Sterijevski, and Eric Wills, Black–Scholes 50 Years Later: Has the Outperformance of Passive Option Strategies Finally Faded?, International Journal of Financial Studies 12: 114. Article Source Here: Reexaming the Performance of Passive Options Strategies via Harbourfront Technologies - Feed https://ift.tt/CLvPDMe November 25, 2024 at 07:30PM

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[optionbacktestingsoftware]

Top Backtesting Software for Options Trading Strategies

Backtesting Software are required for successful options trading because incorrect decision may lead to loss. Find here Best Options Backtesting Software. Due to this vulnerability, traders use trading strategies based on various standards and guidelines that correspond to the demands and objectives of the market. Before entering the market, they experiment with several strategies.

[beststockadvisoryinindia]

Top Backtesting Software for Options Trading Strategies

Backtesting Software are required for successful options trading because incorrect decision may lead to loss. Find here Best Options Backtesting Software. Due to this vulnerability, traders use trading strategies based on various standards and guidelines that correspond to the demands and objectives of the market. Before entering the market, they experiment with several strategies.

[miyagitrading1]

Boost your Trading efficiency and do Backtesting with TradingView paid indicator for Free   

In trading, indicators are powerful tools that help traders analyze price movements, market trends, and volatility. These are particularly useful for identifying patterns, forecasting potential price movements, and confirming trade setups.

These are based on mathematical calculations, historical price data, such as open, high, low, close prices, and trading volume. Indicators help traders identify whether the market is trending upwards, downwards, or moving sideways, aiding in making entry and exit decisions.  

TradingView is one of the most popular platforms that has gained immense popularity among traders and investors worldwide due to its user-friendly interface, robust features, and versatility. It provides highly customizable and interactive charts that allow users to zoom, pan, and apply numerous technical tools.

If you want to stay ahead of the curve, and get the most from your TradingView indicators, you can subscribe to Miyagi Trading’s Premium TradingView indicators to get real-time price updates and set instant alerts for price levels, technical indicators, and custom conditions. TradingView also integrates social features that allow users to share their charts, ideas, and strategies with a global community of traders. This fosters collaboration, learning, and the exchange of insights, making it a vibrant platform for new and experienced traders alike.  

Advanced analysis features:

To begin with, you can start with Miyagi Trading’s TradingView paid indicators free to do backtesting of your trading based on historical data, before doing actual trading. This way, you will be able to enhance your trading strategy and try advanced analysis features.

With Miyagi Trading’s paid TradingView indicators, you will be able to get the most from your trading as the indicators like ATR or moving averages help determine stop-loss levels, enabling traders to manage risks effectively. These convert raw data into visual cues, making it easier for traders to understand complex market behavior.  

Here are Miyagi Trading’s some of the most popular paid TradingView indicator subscription packages:  

Miyagi 101 Alerts & Backtest  

The Miyagi 10in1 is a powerhouse indicator that combines ten strategies in one. It provides customizable alerts and comprehensive backtesting, allowing you to fine-tune your trading strategy based on historical data.  

Miyagi 6in1 Alerts & Backtest  

Miyagi 4in1 Alerts & Backtest  

This premium TradingView indicator package is perfect for traders who want a straightforward yet powerful tool, the Miyagi 4in1 combines four key trading strategies into one indicator. It is a more compact solution but still provides robust alert systems and backtesting options to test your trading hypotheses.  

Miyagi PSAR & STrend  

The Miyagi PSAR & STrend premium TradingView indicator package blends two popular technical analysis tools: Parabolic SAR and Super Trend. This indicator is perfect for trend-following strategies and provides visual cues that help identify entry and exit points with precision.  

Miyagi Backtester  

For traders who rely heavily on data-driven decisions, the Miyagi Backtester is an invaluable tool. This premium TradingView indicator allows you to backtest your trading strategies on historical data, helping you optimize performance before you go live. 

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