Backtests
...
Running a Backtest
Positions

Miscellaneous Exit

Close Short Strike Only

This is only applicable to positions containing credit spreads

If your position contains a credit spread (credit spreads, short iron condors/butterflies), you can exclude the long strike from your closing orders by enabling this setting. When you enable this setting ("Close Short Strike Only"), the backtest will not include the long strike in any of its early closing orders (profit targets and stops). The backtest will only close the short strike and then leave the long strike open until expiration. The backtest will settle the long strike value at expiration based on the underlying price.

If you leave this setting turned off, the bot will include the long strike of spreads with closing orders as long as there is a bid on the long strike. If there is no bid on the long strike, it will not be included with the closing order.

With Close Short Strike Only enabled, the backtest will still use the entire position (short and long strikes) to determine current profit/loss for early exits. It will use the entire position to trigger exit but will exclude the long strike from the closing transaction if this is enabled.