OptionStack Review 2024: Stocks and Options Backtesting Tool Review

Investing, particularly trading in options, can be challenging. It can be very hard to regularly produce money without the correct tools. Current trading tools are incredibly time-consuming and prone to mistakes. OptionStack was developed to automate the entire backtesting process for your stock and options trading methods, hence resolving these issues.

Suitable for retail or professional traders, hedge funds, or asset management companies, this OptionStack review presents a great backtesting software that can assist traders daily. Learn all about the features, pricing, and reputation of this firm to determine whether or not it’s the right choice.

About OptionStack

OptionStack is an institutional-grade platform to develop and test your stock and options trading strategies. It is trusted by hedge funds, asset management companies, professional traders, and retail traders alike. OptionStack’s technology automates the entire process of backtesting your trading techniques, in contrast to other stock and options analysis applications.

A variety of stock and options trading methods, such as purchasing stock, selling covered calls, and modifying iron condors, can be backtested. Whether you’re a seasoned trader or just starting, OptionStack can assist you in backtesting your strategies or providing you with examples.

Bill is the founder of the company, followed by Paul and Austin. Those three established the idea while working for Intel and apparently, both Paul and Austin went to a top-tier college like Standford and Berkeley. Let’s see what features this tool has to offer by reading on.

Legal Information

OptionStack is not regulated, however, it’s not required to be. As the company doesn’t offer services that require regulatory oversight, in situations like this, regulation can be overlooked. However, regulation is still crucial for brokers and can’t be overlooked.

You will lose everything you invested as well as the money you paid for the subscription because unregulated brokers are more likely to be scammers. You won’t get very far working with someone like EndoTech, and you’ll run the danger of raising risk rather than boosting revenues.

OptionStack Features

Backtesting over an adjustable time frame enables users to analyze past options data from various time periods. The OptionStack software gives users a daily limit on backtests, which allows traders to test several strategies in a predetermined amount of time.

Stocks, ETFs, and indexes are just a few of the products that traders can evaluate at the same time, broadening the scope of their research and strategy building. To provide traders with information about trade execution and performance, the platform logs all transactions made during backtesting. 

Each backtest session can have a time limit established by the user, enabling effective analysis within predetermined time limits. OptionStack facilitates accurate simulation of trading scenarios by allowing users to submit custom quotes for backtesting.

Users can access intraday data on the platform, which gives them comprehensive details on options pricing and trading activities all during the trading day. The CSV format for exporting backtesting data allows users to integrate them with external programs and do additional analysis.

OptionStack Pricing

The company’s lack of transparency is its biggest red flag. The plans’ prices are kept under wraps, and traders must register to learn how much a subscription will cost. Since it appears to be the most annoying aspect in the end, that is a coercive method of compelling traders to open an account.

Either way, there is a free plan so traders can test the tool before committing. Subscription plans are billed yearly. Quarterly/monthly plans are also available but at the non-discounted regular price. However, the price of the plans or the discounts are not disclosed. This is an indication of a huge lack of transparency, similar to the Ocean FX broker.

OptionStack Reviews

Another drawback of this company is that there are no reviews on Trustpilot or Sitejabber. In fact, there are no reviews on any of the well-known networks. All we were able to pull up were discussions from Reddit and Elite Trader.

On Reddit, traders were discussing a good backtesting software and one of them recommended OptionStack. However, the discussion about the tool was soon finished, as another one was recommended. 

On Elite Trader, one trader recommended OptionStack and another agreed. It seems that several of them recommended it and there are some unfavorable comments. There are some issues with the statistics calculations. 

Another problem is that the type of exits you can test for is limited because you’re working with EOD quotes, and the option values are at the EOD even though you might have quit during the day at a different price. Either way, it’s recommended to test the tool with a demo and check for yourself.

Payment Options and Process

The firm accepts Visa, MasterCard, American Express, JCB, Discover, and Diner’s Club credit card payments. Other payment methods are not supported and the payment is processed over a third-party website. Unfortunately, there are no refunds so if you renewed your subscription by mistake, don’t expect your funds back.

Before paying for the subscription, traders are required to register on the OptionStack login page. Additionally, another indication of the lack of transparency is that the information about the payment processor is not disclosed in the terms and conditions. 

Weighing the Pros and Cons

In Summary…

In the end, it all depends on what type of trader you are and what you prefer, and OptionStack may not be suitable for everyone. Even though there are some positive recommendations for this company, the lack of transparency is concerning. Plus, we know for a fact they don’t have many subscribers.

We would like to take this chance to promote our amazing AI analysis bot called AI.Fundevity. An AI analysis bot combined with stock and option backtesting software can give traders and investors a potent toolkit and boost the chances of profits.

In conclusion, our AI analysis bot offers a wider range of functions, such as advanced data processing, pattern identification, and real-time market news integration across many asset classes, while OptionStack shines as a backtesting tool tailored for options trading. 

For creating and carrying out trading strategies, any tool may be useful, depending on the requirements and preferences of the trader. So give us a call and talk to our experts about AI.F and combine it for a profitable trading experience.

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