Monday, February 4, 2019

Papers about backtesting option trading strategies


I am looking for all kinds of research concerning option trading strategies. With that I mean papers that publish results on different option trading strategies properly backtested with real-world data.



Answer



I did some digging and found the following papers - most of them offering quite a distinct perspective compared to classical option pricing theory!



The following is my favorite: You could do some backtests on your own with freely available data (using the VXO as volatility information) and with any spreadsheet - easy and elegant:



EDIT:

I will update this answer from time to time when new interesting papers arive:



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