Best Options Backtesting Software

Options backtesting is a valuable technique of testing trading models based on historical data without risking real capital. Through backtesting, traders can test various strategies to see how they would have operated in the past. This article surveys top options backtesting software, both free and paid, catering to various trading styles.

My favorite options backtesting software is Option Omega because it has one-minute data back to 2013, and works for nearly every strategy. Continue reading to learn about Option Omega and my other favorite options backtesting software.

Summary of the Best Options Backtesting Software

Best Options Backtesting Software Compared

You can use the table below to compare my top picks for options backtesting software:

Platform	Best For	Historical Data	Tickers Covered	Key Features	Pricing
Option Omega	Fast, automated backtesting	1-minute (2013–present)	SPY, SPX, QQQ, IWM, TSLA	Portfolio testing, CSV exports, customizable settings	$99/month ($599/year) – 50% off first year with my affiliate link
tastytrade Backtesting	Free backtesting	Multiple tickers since 2013	Major stocks & indices	Free, Forward testing, CSV export	Free
OptionNET Explorer	Manual multi-leg strategy testing	5-minute historical data	Wide coverage with broker integration	Manual tracking, broker connection, live data	~$660/year
ORATS	Institutional-level backtesting	End-of-day options data since 2007	5,000+ symbols	65M+ pre-built tests, advanced analytics, option scanning	$99 per month
Option Alpha	Automation for beginners	Shallow historical data	Broad coverage	Drag-and-drop strategy builder, educational content	$99 per month
eDeltaPro	Advanced delta hedging techniques	Multi-year historical data	Broad coverage	Sophisticated analytics, portfolio optimization	Free-$99 per month

The Best Options Backtesting Software Reviewed

1- Option Omega

Option Omega is my top pick for options backtesting because it is automated, has historical 1-minute data, and allows you to build portfolios to combine multiple strategies. You can read my full review of Option Omega to learn more. 

Key features:

• Automated backtesting for SPY, SPX, IWM, QQQ, TSLA
• 1-minute historical data so you can accurately test 0DTE and 1-DTE strategies
• Test from 1/1/2013 – yesterday
• Combine several backtests with the portfolio feature
• Export backtests to CSV file to analyze further

Pros and Cons of Option Omega

Here are the pros and cons of Option Omega:

Pros	Cons
1-minute historical data, as close to real-time as possible	Limited to only 5 tickers
Can run 10+ year backtests dating back to 2013 in minutes	Cannot manually backtest
Highly customizable parameters
Available for $50 per month with my affiliate link, making it cheaper than OptionNET Explorer

Option Omega Pricing

Option Omega Pricing	Details
7-day Free Trial	Limited to 2017 QQQ
Monthly Subscription	$99 per month
Annual Subscription	$599 billed annually
Discount Offer	50% off your first year with my affiliate link

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2- tastytrade’s Backtesting Feature

tastytrade’s backtesting tool is great if you want to get started with backtesting options for free. It includes every major ticker, and allows you to get a feel for automated backtesting software. However, if you want to set advanced parameters and have the most accurate data, Option Omega is better. 

Key features:

• tastytrade backtesting is free, allowing anybody with an account to get started with no barrier to entry
• Ability to backtest individual trades
• Set basic trade parameters for automated backtesting 
• Forward testing capabilities
• Test several tickers dating back to 1/1/2013
• Export results to CSV file

Pros and Cons

Here are the pros and cons of tastytrade’s backtesting feature:

Pros	Cons
Free to use	Less customizable parameters than Option Omega
Automatic backtesting with many tickers	Data is likely not 1-minute historical data
Ability to export data to CSV	Only available if you have a tastytrade brokerage account

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3- OptionNET Explorer (ONE)

OptionNET Explorer (ONE) is an excellent software to use if you run advanced multi-leg strategies that rely on several adjustments. Trades like the space trip trade (STT) and other advanced strategies require advanced software like ONE to track. Platforms like thinkorswim do a decent job at tracking these, but it becomes harder after a few adjustments. 

Key features:

• 5-minute historical data
• Connect with thinkorswim, IBKR, and Tradier, to monitor your live positions
• Get free access to real-time data by connecting your brokers live data feed
• Ability to send orders directly to your broker

Pros and Cons

Here are the pros and cons of OptionNET Explorer:

Pros	Cons
Connects with various brokers	No automated backtesting features
5-minute historical data for manual backtesting	No monthly pricing option

OptionNet Explorer Pricing

ONE costs 10GBP (~ $12) for a 10-day trial, 160GBP (~ $200) for 3 months, and 525GBP (~ $660) for one year.

OptionNet Explorer Pricing	Details
10-day Trial	10 GBP (about $12)
3 Months Subscription	160 GBP (about $200)
Annual Subscription	525 GBP (about $660)

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4- ORATS

Offers institutional-grade backtesting with end-of-day options data dating back to 2007 across more than 5,000 symbols. It features over 65 million pre-built tests and robust analytics.

• Pros: Comprehensive analytics and broad market coverage.
• Cons: Steep learning curve for new users.

5- Option Alpha

Focuses on learning and ease of use, providing a drag-and-drop strategy builder ideal for beginners.

• Pros: Very easy to learn and educational.
• Cons: Relatively limited historical data and customization.

6- eDeltaPro

Best for sophisticated delta hedging and advanced risk modeling. Offers high flexibility and scenario analysis features.

• Pros: Excellent for expert risk management.
• Cons: Higher complexity to master.

Manual Backtesting vs. Automated Backtesting Software

Automated backtesting is when you set trade parameters and let the backtesting software do all of the work for you. A manual backtest is when you open, close, and stop out of all of your trades one by one while logging your results. 

Automated backtesting is generally preferred since it takes much less time, but it gives you less control over the results. Manual backtesting is best for testing complex multi-leg strategies since automated software may skew the results if some trades incur wide bid-ask spreads. 

For example, if your strategy only involves selling naked puts, automated backtesting will be fine. However, if you want to test an iron condor strategy, which involves four legs, manual backtesting will give you more control. 

How to Choose the Most Appropriate Options Backtesting Software for You

• Consider your budget.
• Assess the complexity of your trading strategies.
• Evaluate data requirements (real-time or end-of-day).
• Check for broker integrations as needed.
• Decide on the level of manual versus automated control you require.

Getting Started: Tips for Effective Options Backtesting

• Begin with simple strategies like covered calls or naked puts.
• Gradually move to complex multi-leg strategies.
• Focus on consistency across varying market conditions.
• Use CSV exports and portfolio tools for full risk analysis.
• Continuously document and refine your strategies based on backtesting results.

Final Thoughts: Master Your Options Trading with the Right Backtesting Software

Backtesting is critical for developing consistency in options trading. Choosing a platform that matches your trading style, strategy complexity, and budget is essential. Don’t hesitate to combine manual and automated testing tools to fully understand your strategies. Begin by trying free trials or discounted subscriptions and continuously improve to achieve success.

Key Takeaways

• Options backtesting software allows traders to experiment with strategies using historical data risk-free.
• Important factors include data access, customization, broker integrations, and a mix of manual and automated features.
• Effective backtesting means starting with basic strategies and building up to advanced setups while optimizing methods based on real-world conditions.

Related Resources

• Options Profit Calculator Tool