Options
Your Backtest Is Useless If Your Bot Breaks the Rules
Date: 2026-09-24 12:00:27
A backtest only matters if the bot follows the same rules.
If the backtest used:
• One position at a time
• A specific entry time
• Defined allocation
• Clear entry and exit rules
…the bot should not suddenly scan all day, open five positions, or take on more risk than the strategy was designed for.
Bots do exactly what you tell them to do.
That’s why automation needs boundaries.
Define the job. Set the limits. Review the workflow. Then paper trade it before going live.
The goal is not open-ended automation.
The goal is repeatable execution of a clearly defined plan.
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#OptionsTrading #TradingBots #AutomatedTrading #Backtesting #RiskManagement #OptionAlpha
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This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement
