Brian Chia
marked this post as
complete
XSP has been released for automation! Please see our FAQ regarding XSP and backtesting: https://docs.optionomega.com/backtesting-faq#i-see-xsp-in-automation-but-not-backtesting.-why-cant-i-backtest-xsp
Brian Chia
marked this post as
planned
XSP automation is in the works. Stay tuned!
Sum K (Sum)
Brian Chia Would be great if we could have XSP in backtesting as well if possible
Brian Chia
Sum K (Sum): We are planning to start with automation only, since the historical illiquidity of XSP makes backtesting unreliable. Since it moves with SPX (and nearly identically with SPY), you should be able to do general testing with either of those symbols as a starting point, but the execution considerations with XSP will become extremely important. Slippage can become extreme when attempting to exit during a violent move (and thus not able to be reliably backtested) so "ride or die" strategies (held to expiration) will likely be favorable. We plan to do some deeper exploration of this with our content whenever it becomes available.
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bk112
+1; cash-settlement and 1256 benefits of XSP are great / needed for ride or die trades; agree you would not want to run stop / PT trades on XSP.
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kunkun
XSP offers great flexibility for both trial and long-term flexibility in diff strategy allocation, just giving us more reasons to trade!
FenG
yes please. SPX is just too big for some trades / accounts.
Curtis O'Reilly
Another approach that can be used for supporting XSP would be to have an option to use SPX on the back tests but use XSP for live trading. Disclaimers can be displayed explaining that XSP trades will likely have more slippage, different strikes, etc. Not all strategies would work, but I've been trading with a group that has been doing XSP trades alongside SPX trades for several months now and, for some strategies (especially those with no stops), XSP has mirrored the success of SPX quite well.
Derek Rhoades
Please add XSP to automated trades so we have a smaller option that cash settles.
VD
I believe it's a CBOE product and would be very beneficial to back test and/or trade small accounts. I would surely use it for both - back testing and automation as soon as it if offered.
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Ben Brown
Add me to the list of people who would like this added. Thx
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YM
This is so important to smaller account traders.
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