IVolatility Launches IVolAI — AI-Driven Options Backtesting on Institutional Market Data

Drop-in Python module turns plain-English strategy descriptions into reviewable, production-quality backtests

May 22, 2026

IVolatility today announced the launch of IVolAI, a specialized Python backtesting module designed to be driven by AI coding assistants such as Claude Code and Roo Code. The module turns natural-language strategy descriptions into complete, reviewable Jupyter notebooks—built on top of IVolatility's institutional options data infrastructure.

The premise behind IVolAI is straightforward: options backtest code, whether hand-written or AI-generated, routinely fails on the same set of subtle issues — option-chain conventions, before-market-open versus after-close timing, holiday bridging, bid/ask handling for short positions, and per-leg capital tracking. The code runs cleanly. The P&L comes back wrong. The result is what IVolatility's engineering team calls "phantom edges"—strategies that look profitable in backtests but do not survive contact with live markets.

IVolAI eliminates this class of failure. The module—nearly 20,000 lines of tested Python—encapsulates correct backtesting methodology and native bindings to IVolatility's API and data schemas. When an AI coding assistant is pointed at the module, it produces correct backtests from a single plain-English sentence.

Key features:

A structured five-question interview pattern that guides the AI to gather entry signal, instrument, optimization parameters, risk rules, and universe
Native handling of intraday risk with sub-minute stop-loss checking
Multi-symbol portfolio backtesting with portfolio-level risk controls
An Optimization Mode with parameter sweeps and a clean no-stop-loss baseline as an honest benchmark
Auto-generated Decision Reports ranking variants at the strategy and portfolio level
Auditable Jupyter notebook output—every line of AI-generated code is reviewable

A representative workflow: a user types "delta-hedged short puts on SPX, weekly expiry, portfolio-level 15% stop-loss, 2020 to 2024". The AI assistant runs the IVolAI interview, generates the notebook, and the backtest produces an equity curve, trade-level CSV, and full performance attribution in minutes.

Availability and pricing

IVolAI is available as a free add-on for IVolatility API customers.

For personal use, plans are available HERE. Subscriptions start at $79/month and include an API subscription for options data, the IVolAI module, the VS Code cloud workspace, and $50 in AI credits to get started.
Institutional clients can contact sales@ivolatility.com for a tailored proposal.

About IVolatility

IVolatility is an award-winning provider of institutional-grade options data, implied volatility analytics, and trading tools. Its data infrastructure powers traders, analysts, quants, hedge funds, and financial media worldwide.

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