Options Backtesting for Trading Strategies

Options backtesting runs a trading strategy against historical market data to show how it would have performed in the past. Rather than projecting forward, options backtesting software applies your entry and exit rules to the prices, volatility, and time decay that actually occurred, opening and closing simulated positions on the dates your criteria would have triggered.

Backtesting is available on my.tastytrade.com and the downloadable desktop platform. It’s not currently available on the mobile or tablet apps.

The options backtesting tool draws on more than ten years of market data, covering a range of market environments, including major market events.

No. Options strategy backtesting is included with every tastytrade account at no additional cost, with no separate subscription, data add-on, or platform tier needed to unlock it. Running a backtest is free no matter how many strategies you test or how far back you look, and you only pay standard commissions and fees if you decide to place the trade in your account.

No. Backtested results are hypothetical and based on historical data. They are not a guarantee of how a strategy will perform in live markets.

Developers can also use tastytrade’s Backtesting API to create and manage backtests, simulate trades, retrieve results and logs, and check available historical date ranges. Learn more about tastytrade's API capabilities.