The COVID-19 stock market decline entices traders to bet on the S&P 500 index to benefit from an upcoming recovery. The S&P 500 index has known multiple pullbacks in price throughout the past 25 years ...

A robust options trading strategy depends on accurate backtesting practices. A backtest shows you how the strategy performed historically and gives you an idea of what to expect. You can learn a lot ...

I explain why backtesting can work well--the relationship of in-sample to out-of-sample performance--and why sometimes it presents major problems. I do so using principles of performance, correlation, ...

We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation. Michael is a former senior editor of investing and trading products for ...