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I Backtested 96 SPY Put Credit Spread Strategies - Here's the Bug Log

DEV Community·tomasz dobrowolski·about 1 month ago
#IsIQ8wJA
#trading#python#quant#stop#fill#cagr
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I built a backtest engine for SPY put credit spreads. 7 years of 1-minute option chains. 96 grid cells across (delta, DTE, profit-target, stop-loss). 16,024 trades that survived validation. This post is the part most quant tutorials skip: the bugs, the lying simulators, and the one-line feature that humiliated my 3-layer composite signal. If you've ever shipped a backtest with great-looking numbers, you might want to read the bug log section. The first lesson: mid-fill backtests are lying to you The naive engine filled at the bid-ask mid. Numbers looked great. Then I implemented what an actual desk does - post a limit at combo_ask + $0.04 , wait for someone to cross it, accept rejection - and CAGR dropped 30–60% across the entire grid. Several cells flipped from positive to negative.…

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