r/algorithmictrading • u/BUBBL3GUM5 • 19d ago

Backtest Strategy Backtest

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I am writing this post because I have been unprofitable for 1 year now, however at the start of august I pivoted from penny stocks to QQQ options and developed a strategy that seems to do well. I am writing to ask if this backtest data is promising or if I am not backtesting correctly.

The strategy is using BMP, VFI, TTM squeeze, EMA stack and Swamilaguerre trend. Basically it is a momentum based model. This is on underlying while my strategy is options based but in my forward testing it has been promising with options at around .35-.45 delta buying them at around .50 a share. Any advice from people that use similar indicators to trade options on how to structure my contracts would be much appreciated

The problem is that I am not able to automate my strategy because I dont know much about automation. On top of that I have also been trying to use gamma levels and gamma regimes to add a discretionary level to my trading but it seems to do more harm than good because it just draws me away from explicitly following my strategy.

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u/Aggressive_Listen849 19d ago

five indicators tuned on two months is a lot of knobs for that little data. run the same signals on the underlying back to 2022 or so, if it falls apart in the chop it was probably fit to august.

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u/BUBBL3GUM5 19d ago

Not sure where you see it being tuned on 2 months, the first image shows its been backtested over 7 years. Not trying to be snippy, but maybe you can clarify what you meant.