OPTIONS·LAB

Walk-Forward Backtest

A strategy that only works frictionless isn't a strategy. Watch the costs eat in.

Short ATM straddle · σ=0.094 · 23 trades
Cost drag (with vs without)
−$280
CAGR (with costs)
-7.2%
Max drawdown
15.4%
Sharpe
-1.44
Win rate
43.5%

Equity — with vs without costs

Monte-Carlo fan (outcome distribution)

Metrics — with vs without costs

metricwithwithout
CAGR-7.2%-7.1%
max drawdown15.4%15.1%
Sharpe-1.44-1.41
Sortino-1.40-1.38
win rate43.5%43.5%
profit factor0.280.29