Category: Research
Santa Rally Backtest - What 75 Years of S&P 500 Data Reveal
A complete Santa Rally backtest using 75 years of S&P 500 data. Learn how the market typically behaves during this 7 day window, what influences the rally, and more.
Open Interest Report: How Can You Trade It? Here’s What the Backtest Shows
Many traders focus on charts or news, but options positioning tells a different story. We’ve backtested our open interest report to see if it can help predict stock price moves.
Use a Backtest to Build a 52-Week High or Low Options Trading Strategy [Free Backtest File]
11 min read
When the trend is strong, there could be either trend-following or trend-reversal opportunities at a stock's 52-week highs and lows. Using our backtest file, you can measure the effectiveness of...
Backtesting Beta for Volatility Insights: Build Smarter Options Trading Strategies and Portfolio Ideas
10 min read
As an investor, it is likely you have already come across high-beta stocks. These stocks can significantly overperform in bull markets and underperform in bear scenarios. While we would not advise...
Run Your Own Bull Put Spreads Backtest [Data-Driven Option Strategy]
13 min read
If the large potential loss of selling a naked put scares you, a bull put spread might be an alternative to consider. This strategy offers a risk-limited way to bet on a stock rising, even with a...
Options Trading Strategy Guide: Using ADX to Backtest Iron Condors
15 min read
As an options trader, don’t you think it would be nice to have a way to know when a stock price is most likely to move sideways for a while? This guide shows how the ADX indicator can help you set...
Use the ATR Indicator to Refine Your Options Trading Strategy [Backtest Results]
14 min read
When you trade options and want to understand how likely you are to profit, running ATR backtests is essential. This article will show you how ATR helps measure market volatility and how Option...
Trading Earnings Events with Options - A Backtested Strategy
13 min read
After an earning event, stocks can experience a sudden price change depending on the way the market interprets the company's performance. This can be an opportunity for traders to capitalize on...
A Backtested Approach to Using Bollinger Bands in Options Trading - Part 1
14 min read
All traders know that, in general, a few rules will hold true no matter what the market climate is (especially when using the Bollinger Band indicator or similar tools). For instance, stocks move...
A Backtested Approach to Using Bollinger Bands in Options Trading - Part 2
10 min read
Following the results we showed in the first part of our series on Bollinger bands, let us show you through real-life examples how you can use this indicator to set up profitable trades. We have...