Backtesting Technical Analysis & Options Strategies: Nasdaq-100 vs S&P 500

How can you maximize the performance of the most popular indices tracked by investors? Explore trading and option insights that perform with technical indicators to optimize your exposure to the Nasdaq-100 Index (NDX) and the S&P 500 index (SPX).

This report consists of 2 primary backtests:

• Technical Analysis Backtest: This section highlights the top-performing technical indicators for NDX and SPX over multiple holding periods and how they compare to their relative benchmarks. Historical data for technical analysis backtesting was sourced from Xignite1. We built our own backtesting algorithms to calculate returns, volatility, and trade data.
• Options Strategy Backtest: Using the benchmarks calculated in the Technical Analysis Backtest, the top 2 performing holding periods and top 5 technical indicators are used to generate trading signals. Using these signals, we backtested multiple options to analyze their performance for both NDX and SPX. Historical options data for strategy backtesting was sourced from OptionMetrics1 and built our own backtesting algorithms to calculate returns, volatility, and trade data.