I run a backtest in Nifty 17300 Oct CE absolute profit was showing 785 but the profit percentage was 94.85% in CTB. It should be around 5-6% considering my capital required for selling the call would be 1.5 lacks
Hi @akash_uniyal as Streak does not consider the margin, so profit percentage calculated for option selling is based on the absolute option price and not on the margin required to sell the option strike.
For example, if NIFTY 17300 CE has a premium of 200 and it reduces to 100. In case we have sold the 17300CE, then the Streak system will calculate profit based on 200 i.e. 50% irrespective of the margin required for the trade.
Therefore, we suggest checking the absolute P/L value instead of the percentage in case of margin instrument