Trade Simulator

"If, over the past 36 months, each month you opened a SPY butterfly 30 days out with 10 point wings and held it for 17 days, how many months would it have needed adjustment?"

The answer is: 6 months would require adjustments (see report below).

This type of question can now be answered by Trade Simulator, a free application you can run from your desktop.

How can you use this information?

You could backtest by opening a trade on 8/6/07 using Optionvue or TOS's thinkBack, then fast forward to 8/17/07 where the strike is hit and see if you could adjust the trade to a successful conclusion.

You also gain confidence that this is probably a viable trading strategy.

New Version 1.04 - Standard Deviation has been added as a 3rd choice, in addition to Percentage and Points!!!