While backtesting a strategy to implement on futures. Do we backtest it on spot instrument or the future contract itself. If the contract itself how do we backtest for more than the contracts period
Ideally you can do on any and it should not matter much unless multiple legs are involved in strategy. If strategy involves only single leg and purely alpha seeking then results won’t vary at all.
please share how can we backtest future for periods more than contract period ?? Please help on this .
What do you mean by leg ?
It means like for ex if the strategy involved is a calendar spread then two sides are involved so in this case two legs.
Got it. Thanks Siva
You can do for spot as there won’t be much difference with results.
thanks but cant anayse spot currency markets sir , and if there is no zerodha demat account then we dont get spot data sir for equities .