Quick Start Guide

Welcome to GreeksLab - a platform for building and backtesting options trading strategies. This guide will walk you through creating complex multi-leg strategies, setting up entry and exit rules, and running your first backtest.

Step 1: Create Your First Strategy

After registering your account, you'll be taken to the list of strategies. To create a new strategy, click the "New Strategy" button.

To get you started, whenever you create a new strategy we generate a default strategy for you. You can edit it to your liking. A strategy consists of backtest settings and one or more position templates. To run a backtest, you need at least one position template with a defined options combo, along with entry and exit conditions.

First, give your strategy a descriptive name. Click on the strategy name to edit it. A good name helps you identify a strategy later when you have multiple strategies.

Step 2: Configure Backtest Settings

Configure the backtest parameters to define how the strategy will be evaluated against historical data:

• Date Range: Select the start and end dates for the backtest period
• Initial Capital: Defaults to $100,000; adjust to reflect the intended account size
• Commissions and Slippage: Specify transaction costs and execution slippage to simulate realistic trade performance

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Step 3: Add or Edit a Position Template

A position template is the core building block of a strategy. It defines the structure and logic of the trades the strategy will simulate.

Each position template specifies:

• Position Name: Used for identification in backtest reports
• Underlying: The asset on which the position is based (e.g., SPX)
• Option Legs: Defines which contracts to trade (e.g., short 16-delta put, long put 10 strikes lower)
• Entry Rules: Determines when the position is opened
• Management Rules: Defines how to adjust or close the position over time

A strategy may include multiple position templates, enabling the backtest to simulate several position setups within a single run.

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Step 4: Build Your Position Legs

Each leg represents a single option contract that the backtester will select and trade at the moment of execution. The leg definition includes the following components:

• Leg Ratio: Determines the quantity relative to the base position size (e.g., 1 for a single contract, -2 for doubling the opposite side)
• Option Right: Specifies whether the leg is a Call or Put
• Action: Indicates whether the leg is Long (buy) or Short (sell)
• Selector: Defines how the backtester selects the option contract for a trade (e.g., by delta, strike offset, OTM%, or premium)

Each position can include multiple legs. A leg can have multiple linked legs to define relative strike spacing.

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Step 5: Set Up Entry Rules

Entry rules define the conditions under which a position is opened. Each entry rule consists of:

• Conditions: Logical criteria based on market data, time, or other factors
• Action: Always set to Open Position

Multiple entry rules can be added, but only the first rule whose conditions are met will trigger on any given day.

The Open Position action includes a Multiplier setting. The multiplier scales the entire position template — for example, a multiplier of 2 will double all leg quantities defined in the template.

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Step 6: Add Management Rules

Management rules define how positions are managed while they are open. Each rule consists of:

• Conditions: Criteria based on market, position, or time-based factors
• Action: One of the following:
  • Close Position
  • Close Legs
  • Roll Leg

Examples of common management rules:

• Profit Target: Close the position if profit exceeds 50% of the premium collected
• Stop Loss: Close the position if loss exceeds 200% of the premium
• Time-Based Exit: Close the position 4 hours before expiration to reduce gamma risk

Unlike entry rules, multiple management rules can execute. Rules are evaluated in priority order, from top to bottom. Drag-and-drop can be used to reorder them.

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Step 7: Run Your Backtest

Before running the backtest, review the configured strategy.

Once configuration is complete, click the Run Backtest button. The system will begin processing and automatically redirect to the results page, where detailed performance metrics will be displayed as they are calculated.

Step 8: Analyze Your Results

The backtest results page is organized into several tabs, each designed to provide detailed insights into the strategy's performance.

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Overview Tab

• Displays key performance indicators such as total return, daily win rate, average PnL, and core risk metrics
• Includes equity curve, drawdown chart, and underwater chart to visualize performance over time
• Shows monthly returns heatmap and daily PnL distribution to identify return patterns and volatility
• A detailed performance and risk metrics table is provided at the bottom of the page

Insights Tab

• Analyzes performance across different conditions such as market environment, position structure, and timing
• Helps identify which factors contributed to or detracted from strategy performance

Positions Tab

• Lists every simulated position during the backtest

Positions Details

• Clicking a row opens a detailed view with intraday performance charts and trade-level activity

Daily Tab

• Displays a table of daily performance data
• Provides a day-by-day breakdown of returns and drawdowns

Strategy Tab

• Shows a read-only snapshot of the strategy configuration used during the backtest
• Useful for reference if the strategy is later modified

Next Steps

Congratulations! You've built your first strategy, run a backtest, and explored the results. Now you can:

• Refine Your Strategy: Adjust conditions, leg selection, or rules based on the results
• Try Different Market Conditions: Test your strategy across different time periods
• Explore Advanced Features: Learn about custom expressions and rolling strategies
• Build New Strategies: Experiment with different option combinations and approaches

Be sure to check out our other documentation sections for more advanced concepts:

• Strategy Basics - Complete strategy framework guide
• Position Legs - Advanced leg configuration options
• Rules Overview - Build sophisticated entry and exit logic
• Analyzing Results - Get the most from your backtest data
• Custom Expressions - Create complex trading conditions