Backtesting FAQs

What does the "and open next trade at normal time" and "re-open immediately" mean?

If a trade is re-opened "at normal time" it simply means when the option would have expired, re-open the position. Re-open immediately, means at the end of the same trading day, open the position up with the same logic (such as 30 days to expiration, 40 delta, etc) as when the trade was first opened.

When are calculations made for trades?

While we send alerts and update the "Today" tab intraday to give traders early notification, the mechanics of the TradeMachine® are that it uses end of day prices for every back-test entry and exit (every trigger).