What are some common backtesting software industry quants use?
Do they do it with python libraries? Where are they pulling data from (CBOE, Nasdaq data link)? Or do they use a cloud service like quant connect?
Want to backtest some QQQ strats (ie put credit spreads 16Delta, 50 days out 21 days DTE, 50% profit and exit) and was curious which services to use for quicker testing, and which are worth learning/amortizing over a longer period of time?
From what I have seen always made in house.
After all a backtest is just positions * returns so it does not need a software.
Common statistics like Sharpe or drawdowns are also pretty straightforward to compute.
Funds/pods often have internal libraires though, to be sure backtests are consistent across the fund/pod
The hard part is the signal construction but by definition it is proprietary so can't use a software either. Moreover signal construction varies too much between different strategies so hard to create a generic way to build a signal.
Hope that helps
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