Terminology

The following page provides a definition for some common terms that you'll see used throughout our backtester.

A backtest is the actual result set of a run. A backtest contains a name, start/end date, starting balance, one or multiple positions, and accompanying performance charts, stats, and trade logs.

A position is a specific strategy type that is included in a backtest, such as a short put, strangle, or iron condor. A backtest can contain anywhere from 1 to 8 separate positions. Each position has its own entry and exit conditions that will determine which trades to make. In the example below, you'll see 3 strangle positions listed for this backtest.

A trade is a specific entry and exit that is generated based on the position's configuration. Each position generates multiple trades during a backtest, and it's those trades that determine the profit or loss for the backtest.