Weekly Iron Butterfly Backtest (Part 16)

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

Week 15′s trade begins like this:

This was a “manna from heaven” trade that closed the very next day:

P/L on Day 1 ranged from -$144 to +$273.

P/L on Day 2 ranged from +$351 to +$459, which is where it closed for a 10.1% return on $4,569 margin requirement.

This trade has now won nine out of 15 weeks in backtesting.  Net P/L, however, is still in the red at -$1,773.