AI-powered algorithmic trading for Indian markets
Options Backtesting

Test options strategies on NIFTY & BANKNIFTY

Backtest straddle, strangle, iron condor, and butterfly strategies on Indian index options. Full trade log with entry/exit prices, P&L per trade, win rate, and drawdown analysis.

Supports NIFTY, BANKNIFTY, FINNIFTY, and MIDCPNIFTY. Configurable entry time, SL/TP, and strike selection.

Sample backtest results

Real backtest output from options strategies run on Anadi Algo.

StrategyPeriodUnderlyingLegsTradesWin RateNet P&LMax DDAvg WinAvg Loss
NIFTY Short StraddleDec'25-Feb'26NIFTYATM CE + ATM PE5860.3%+Rs.42,800-Rs.18,600+Rs.2,840-Rs.1,920
BANKNIFTY Iron CondorNov'25-Feb'26BANKNIFTY4-leg IC (200pt wings)4269.0%+Rs.38,500-Rs.12,400+Rs.1,950-Rs.1,680
NIFTY Strangle (1SD)Oct'25-Feb'26NIFTY1SD OTM CE + PE9561.1%+Rs.56,200-Rs.22,800+Rs.2,120-Rs.2,460
FINNIFTY ButterflyJan'26-Feb'26FINNIFTY3-leg butterfly1866.7%+Rs.8,900-Rs.4,200+Rs.1,280-Rs.960

Trade log: NIFTY Short Straddle

Dec'25-Feb'26

Sample trades from the backtest. Every trade shows entry/exit time, premium, P&L, and exit reason.

DateEntryExitTypeEntry PremiumExit PremiumP&LExit Reason
2026-02-0309:2014:45Short StraddleRs.342Rs.280+Rs.1,550TP hit (basket 18%)
2026-02-0409:2011:32Short StraddleRs.358Rs.430-Rs.1,800SL hit (basket 20%)
2026-02-0509:2015:15Short StraddleRs.310Rs.185+Rs.3,125Time exit
2026-02-0609:2015:15Short StraddleRs.325Rs.240+Rs.2,125Time exit
2026-02-0709:2013:08Short StraddleRs.380Rs.456-Rs.1,900SL hit (basket 20%)

Total P&L

+Rs.42,800

Win Rate

60.3%

Max Drawdown

-Rs.18,600

Total Trades

58

Supported options strategy types

Multi-leg options strategies available for backtesting.

StrategyLegsRiskRewardBest ForSL Method
Short StraddleSell ATM CE + Sell ATM PEUnlimitedPremium collectedRange-bound markets, low volatility daysBasket SL (combined premium)
Short StrangleSell OTM CE + Sell OTM PEUnlimitedLower premium, wider breakevenRange-bound with buffer zonePer-leg or basket SL
Iron CondorBull put spread + Bear call spreadDefined (wing width - premium)Net premium collectedDefined risk range-bound tradesMax loss = wing width - premium
ButterflyBuy 1 + Sell 2 + Buy 1 (same type)Defined (net debit)Max at middle strikePrecise directional viewMax loss = net debit paid
Bull/Bear SpreadBuy 1 + Sell 1 (same type, diff strikes)DefinedDefinedDirectional with capped riskMax loss = spread width - premium

Supported underlyings

Indian index options available for backtesting.

NIFTY 50

Lot Size25
ExpiryWeekly (Thu)
ExchangeNFO
Tick Size0.05

BANKNIFTY

Lot Size15
ExpiryWeekly (Wed)
ExchangeNFO
Tick Size0.05

FINNIFTY

Lot Size25
ExpiryWeekly (Tue)
ExchangeNFO
Tick Size0.05

MIDCPNIFTY

Lot Size50
ExpiryWeekly (Mon)
ExchangeNFO
Tick Size0.05

Backtest configuration parameters

Every parameter you can configure for an options backtest.

ParameterDescriptionExample Values
Date RangeStart and end date for backtest period2025-10-01 to 2026-02-28
UnderlyingIndex to trade options onNIFTY, BANKNIFTY, FINNIFTY, MIDCPNIFTY
Strategy TypeOptions strategy templateStraddle, Strangle, Iron Condor, Butterfly
Strike SelectionHow strikes are chosenATM, 1SD OTM, fixed offset (e.g. 200 pts)
Entry TimeTime of day to enter the trade09:20, 09:30, 10:00
Exit TimeIntraday square-off time15:15, 15:20, 15:25
SL ModeStop loss typePer-leg %, basket premium %, absolute Rs.
TP ModeTake profit typePer-leg %, basket premium %, absolute Rs.
Fill ModelHow entry/exit prices are determinedNext Open, Next Close
LotsNumber of lots per leg1, 2, 5

Frequently asked questions

Can I backtest NIFTY weekly options strategies on Anadi Algo?

Yes. Anadi Algo supports backtesting on NIFTY, BANKNIFTY, FINNIFTY, and MIDCPNIFTY weekly options. You can test straddle, strangle, iron condor, butterfly, and spread strategies with configurable entry/exit times, strike selection, and stop loss modes. Results include full trade log, equity curve, win rate, and drawdown.

What data is used for options backtesting?

Options backtests use historical candle data for the underlying index to determine ATM strikes and compute entry/exit prices. Strike selection is based on the underlying price at entry time. Premium decay and movement are modeled using the fill model you select (Next Open or Next Close).

How accurate is options backtesting compared to live trading?

Backtesting uses historical data and fill models that approximate real execution. Actual slippage, bid-ask spreads, and liquidity may differ in live markets. We recommend paper trading any strategy that passes backtesting to validate execution before going live.

Can I set basket-level stop loss for multi-leg options strategies?

Yes. For multi-leg strategies (straddle, strangle, iron condor), you can set a basket-level SL based on total premium. For example, exit all legs when combined premium loss exceeds 20% of collected premium. Per-leg SL is also available.

Related features

Options Hedge Baskets

Build and manage multi-leg options positions. Per-leg roll/close, combined P&L, hedge control.

Options Hedge Baskets

Equity Backtesting

Backtest equity strategies on 5 years of NIFTY 500 candle data. Static or dynamic instrument selection.

Equity Backtesting

BANKNIFTY Strategy Builder

Build BANKNIFTY-specific strategies using AI Chat Wizard. Intraday and positional.

BANKNIFTY Strategy Builder

Backtest your options strategy before risking real capital

If it does not work in backtest, it will not work live. Test straddles, strangles, iron condors on historical data.