Getting started with MesoSim

MesoSim's Job Definition can be intimidating at first look, but with targeted effort, it can be mastered.
If you managed to learn formulas in Microsoft Excel, you will be capable of learning MesoSim.

The Job Definition can be best described as a Domain Specific Language for Options Trading.
Technically, it is a JSON infused with (a minimal set of) Lua.
If you don't know what JSON is, please watch this video and don't worry much about Lua for now.

We recommend the following approach for new users:
  • Create a backtest using the Simple Run interface.
    For example: add two more legs with a default settings, to model a broken wing butterfly
  • Skim through the Job Definition of the created backtest.
    You can find it in the Job Definition tab of the backtest result page.
    Don't get discouraged if you don't understand it fully.
  • Head to the documentation and read from beginning to end.
    It takes approx. 30 minutes to do so.
  • Check out our Strategy Library which showcases real trading strategies
  • Take the [SPX-ShortPut] built-in template and start modifying it.
    Refer to the Golden path of strategy development for further guidance
  • Finally, study Adjustments to unleash the full power of the simulator.
    Do this once you are comfortable with basic settings (e.g. using Entry & Exit).

Golden path of strategy development
  • Specify your goal at the beginning. For example:
    Enter an Iron Condor 14 Days to Expiration. Profit Target is $100, Stop Loss is 3x Profit Target
  • Start with a built-in template which is close to your goal
  • Iterate quickly:
    Reduce the simulation time by having a small backtest period (e.g. 2022).
    Disable Margin calculation unless you really need it.
  • Change one part at the time:
    This is the most important part. Do only one modification and run it.
    Then repeat: Clone, Modify one part then Run it
  • Use the Event Viewer to understand what is happening
  • Once satisfied: Save it as a template and check it on multiple time periods
  • Once you have a working strategy:
    Check it every week and compare it with your live (or paper) trading results
  • Follow us for updates on simulator and strategies
Common pitfalls
  • Not reading and actively using the documentation
  • Changing too many things at once
  • Getting blindsided by equity curve, not looking at the Event Log
  • Using the template editor for strategy development:
    template editor meant for small changes. You should iterate by Cloning runs
  • Not following your trade plan
  • Not monitoring strategy performance:
    Backtests should be re-run weekly and results should compared with live results

Need help? or reach out to [email protected] for assistance. 🗙