Backtesting

Backtesting runs your strategy logic against historical market data so you can estimate performance, risk, and trade frequency before risking real capital.

What Backtesting Is and Why It Matters

A backtest simulates how a strategy would have behaved over a chosen period using past prices. It helps compare strategies, tune parameters, and set expectations for drawdowns and win rate—always remembering that past results do not guarantee future performance.

Quick Presets

One-click starting points include:

• BTC Momentum — Momentum-oriented defaults on Bitcoin
• ETH Mean Reversion — Mean-reversion style setup on Ethereum
• Conservative DCA — Cautious dollar-cost style parameters
• Aggressive Scalping — Higher-activity, tighter-window style preset

Exchange Selection

Choose which exchange context to use for the simulation. Available options reflect your configured accounts, such as Crypto.com, Coinbase, and Robinhood—only exchanges you have set up appear in the selector.

Instrument Selection

Pick a market using the searchable dropdown to quickly find symbols and pairs without scrolling huge static lists.

Parameters

Configure the run before you start:

• Strategy — Which strategy logic to simulate
• Timeframe — Bar size such as 1h, 4h, 1d
• Date range — Start and end of the historical window
• Allocation — Notional capital used for sizing in the simulation
• SL / TP — Stop-loss and take-profit assumptions where applicable
• Threshold mode — How signal thresholds are applied for the strategy

Running the Backtest and Reading Results

Start the run from the backtest screen. When it completes, review summary metrics, the equity curve, and the trade log together—high return with huge drawdown may not fit your risk tolerance even if the headline number looks good.

Metrics Explained

• Total Return — Cumulative percentage gain or loss over the period
• Sharpe Ratio — Risk-adjusted return (higher is generally better, for comparable strategies)
• Max Drawdown — Largest peak-to-trough equity decline
• Win Rate — Share of trades that closed profitably
• Total Trades — Number of round-trip or qualifying trades in the window
• Profit Factor — Gross profits divided by gross losses; above 1 means winners outweighed losers in dollar terms

Equity Curve Chart

The equity curve plots simulated account value over time. Smooth upward slopes with tolerable dips are easier to live with than volatile swings that match your stress level poorly.

Trade Log Table

The trade log lists individual simulated entries and exits (and related fields) so you can verify the strategy is behaving as intended and debug odd periods.