 Welcome back. In this lesson I want to go over the options back tester that you can use to find those statistical probabilities before you enter the trade. So before you place a trade there's a few things that you need to know. You need to know what's your market assumption. Do you have a bias to the long side, short side, or are you more neutral on the underlying symbol? Second, what's your strategy? Are you trading an iron condor, strangle, butterfly, etc. And a lot of that depends on where the implied volatility level is. And then you need to know when to enter the trade and when to exit the trade. At navigation trading we don't guess on what we think might be the best way to trade a particular strategy or symbol. We have statistics and models that back that up. Let's go to the back tester and take a look at an example. So we're looking at ticker SPY and we're selling an iron condor. And so what you'll see here is I've put five different scenarios on the board to show you the different widths of the wings for an iron condor. In this case this is basically a butterfly spread. We're selling the at the money Delta call and put and then buying the 20 Delta wings. And then we get a little bit wider, the 40, 20, 30, 10. And the 20 Delta is where we typically sell our short strikes on iron condors that we trade. So this would be kind of the one that we would want to pay attention to. We're selling the 20 Delta put and call and we're buying around the 10 Delta wings to define that risk. So if you look at SPY over the last three years, entering with 45 days to expiration and booking our profits if we reach 40% of max profit, you can see 153% return, 39 wins, 5 losses, over an 88% win rate. It's been an excellent strategy. Now what this doesn't take into consideration and it'll actually probably be a filter on this software in a pretty short period of time. By the time you're watching this it might be available and that is an IV rank and an IV percentile filter. Remember we like to trade these when implied volatility is high but this is just showing trading iron condors all the time regardless of implied volatility levels. You can utilize this option back tester for any symbol. So you can take a look at IWM for example and see how that compares to SPY or keeping an eye on the kind of the same standard iron condor that we trade which is about 153% return with SPY. In this case it's 180%. So even better and you can see the tighter you get in this case butterflies perform extremely well with IWM. Maybe you want to trade a specific stock but if you took a look at Amazon and and you can see kind of the performance of Amazon. Now you can see on our standard iron condor still good returns but is there any way that we could improve that? Is there any scenario that would do even better than that? One of the things you can look at is for an individual stock is you can say never trade earnings. So it's going to exit the position two days before the earnings announcement and then it's going to re-enter two days after the earnings announcement. And so you can get an idea of what that what the statistics and the back testing look like for trading Amazon without earnings and you can see that improved it pretty dramatically. So this is the power of using statistics. This is the power of this back tester. You can actually get this back tester yourself so you can run any scenario you can think of on any symbol. I've left a link in the in the resource links so feel free to check that out. Hope this was helpful. See you in the next lesson.