Weekly Iron Butterfly Backtest (Part 19)

In this blog series, I’m backtesting the weekly option trade described here.

Week 18′s trade begins with this:

After opening the day down, the market recovered and pressed higher.  This forced an adjustment:

The market continued to move higher and max loss was reached just six hours after the trade was placed:

P/L ranged from -$12 to -$729, which is where the trade closed.  On an adjusted margin requirement of $5,523, this is a 13.2% loss.

This trade has now won nine times out of 18 weeks.  Unfortunately, the average win so far is $433 and the average loss is $936.