> For the complete documentation index, see [llms.txt](https://guide.laevitas.ch/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.laevitas.ch/guides/tool-guides/strategy-backtester.md).

# Strategy Backtester

Ever wanted to know the performance of an option strategy over time? This tool is designed to help you backtest option strategies and evaluate their performance.

### Inputs

<figure><img src="https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2FhqjFeqtXcJCbjqRkdEvw%2Fimage.png?alt=media&amp;token=98e81038-aa54-4fa2-be94-a4d1e1d9a8c9" alt=""><figcaption></figcaption></figure>

***Currency***\
Choose the asset you want to backtest. Currently only BTC and ETH is available.

***Frequency***\
Choose the frequency which the option strategies will be opened and closed. Each new strategy will open after the previous one is closed.

***Year To Date***\
Backtest from the start of the current year.

***No. of Trades***\
Input the number of trades to be backtested.

***Starting Capital***\
Select the type of starting capital and input the amount of starting capital.\
NOTE: If $ is selected, the Backtester will assume Portfolio as USD-margined and settled instead of the crypto asset.

### **Strategies**

Select one of the option strategy icons to start backtest.

<figure><img src="https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2FS5942JCCqqp8FQsxYqR1%2Fimage.png?alt=media&amp;token=f8bd2b08-2057-42c8-bed6-088f55d5a7eb" alt=""><figcaption></figcaption></figure>

### Strategy Leg Input

Select the Direction, Type, Delta and Size of the individual legs.&#x20;

For certain strategies, the Direction and Type of the legs is pre-fixed and cannot be changed.

<figure><img src="https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2FX2jMFk5wlKkJ8xuzBHlV%2Fimage.png?alt=media&amp;token=7d7e99c9-f949-456f-86f2-427cdae8ca82" alt=""><figcaption></figcaption></figure>

## Backtest Results

Results are presented in 3 sections.

### 1. Portfolio Equity Curve

The performance of the strategy is shown as Portfolio Value, in terms of the underlying asset (BTC/ ETH) or in USD. \
\
The Index Price may be toggled into the chart display against the portfolio performance.

<figure><img src="https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2FTC9hxe1v7Av9X9ELwYMr%2Fimage.png?alt=media&amp;token=cc97aa23-e501-454c-8978-38f2b66f0693" alt=""><figcaption><p>Portfolio Equity Curve</p></figcaption></figure>

### 2. P/L Stats

More details of the porfolio performance is shown here.

<figure><img src="https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2FIbi1SkRzsOkPdgl9NZO8%2Fimage.png?alt=media&amp;token=a46b98d4-c54c-4e51-b60c-f0a15a2dcc81" alt=""><figcaption></figcaption></figure>

### 3. Trade Log

Settled and Unsettled Positions are tabled here with their respective P/L and resulting Portfolio Value effect.

<figure><img src="https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2FOCq6751JUwGKFIkFIuEa%2Fimage.png?alt=media&amp;token=b04938f7-f1c6-48e8-8376-762e1068b2f8" alt=""><figcaption></figcaption></figure>
