How to Backtest a Stock or Options Trading Strategy Efficiently | Getting Started with thinkorswim®

Getting Started with thinkorswim® | Cameron May | 3-18-24
Characteristics and Risks of Standardized Options. bit.ly/2v9tH6D
"How has this strategy done in the past?" In this video, we walk through three powerful thinkorswim tools a trader might use in the back-testing of new techniques or strategies for stock or options trades. These tools include historical stock chart functions, the thinkBack feature, and thinkorswim's OnDemand.
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Options involve risks and are not suitable for all investors. Please read the Characteristics and Risks of Standardized Options carefully before trading.
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[@markanderson7349]

great content, Cameron. So many facets to this diamond, TOS. Thanks for your enlightenment

[@tradertalkswebcasts]

Glad you enjoyed it! And it's always my pleasure. ^CM

[@Rob-on-the-go]

Awesome info! Thanks!

[@tradertalkswebcasts]

Certainly my pleasure! ^CM

[@scotthirsch3479]

Another question: say you like how the back test looks so you build a custom scanner off the features. What about the ability to forward test the results of a scanner to see how the results do over say a week or two? This would be a logical follow up to back testing since presumably one wouldn't buy all the results of a scanner. If you can't do that, maybe there are some tricks to make it more manageable. Thanks!

[@tradertalkswebcasts]

I'm not aware of any current functionality that would allow for this process to be automated, beyond waiting a couple weeks and re-conducting the scan. In any event, thanks for watching! ^CM

[@stancartmankenny]

does this include intra-day data?

[@tradertalkswebcasts]

Yes, thinkorswim Desktop's OnDemand feature includes tick-by-tick, intraday data. Enjoy! ^CM

[@DAH-zr4cm]

Thanks for this, very helpful. I tried Thinkback though and found ticker prices were often incorrect, sometimes repeating the same data on consecutive trading days. I’ve also found other comments wit this issue. Is there a fix for this?

[@tradertalkswebcasts]

Happy to clarify! When the data repeats, that's not an error but instead reflects a weekend, when normal-trading-hours prices don't change. I hope this helps, and thanks for watching! ^CM

[@DAH-zr4cm]

Thanks for responding. But on my system I’m finding that April 1 and April 2 prices are the same, but they weren’t in fact identical. Found this for LEVI and others. I’m wondering if there’s something I’m missing. Meanwhile, thanks for the outstanding classes.

[@SchfiftyTJ]

Is there a way to backtest using the Web version as opposed to the desktop version?

[@tradertalkswebcasts]

The backtesting tools I demonstrated here are only available on the desktop version. I hope this helps, and thanks for watching! ^CM

[@scotthirsch3479]

How can I use 4 hour charts etc with the daily when doing back tests without losing my place in time? You end up seeing everything by having to scroll back which defeats the purpose.

[@tradertalkswebcasts]

I know exactly what you mean. One way to randomize this view is to load a long-term four-hour chart, quickly zoom in on just the last two weeks or so, then use the scroll bar at the bottom to zip backward in time to a random spot on the chart. You may have some inclination of general movements of the chart, but you won't be able to recall enough detail to influence your testing. I hope this helps, and thanks for watching! ^CM

[@swapnilmahankal]

it is not placing order in onDemand Virtual order instead putting it in back trades

[@tradertalkswebcasts]

You may want to call Support at 800-435-4000 if the issue persists. Thanks for watching! ^CM