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Backtesting

Backtesting lets you run a strategy against historical price data to see how it would have performed in the past. It's the fastest way to validate your trading logic before risking any money.

Running a backtest​

  1. Open the Backtesting panel in the right sidebar
  2. Click New Backtest
  3. Configure the backtest:

Backtest configuration Set your strategy, date range, starting capital, and commission rate

  • Strategy — Select which strategy to test
  • Start date — How far back to test from
  • Initial capital — Starting balance (default: $10,000)
  • Commission — Trading fee percentage (default: 0.1%)
  1. Click Run Test

The backtest runs your strategy tick-by-tick through the historical data. Depending on the timeframe and date range, this can take a few seconds to a minute.

Interpreting results​

After the backtest completes, you'll see:

  • Total return — How much your initial capital grew (or shrank)
  • Trade list — Every trade the strategy made, with entry/exit prices and P/L
  • Equity curve — A chart showing how your portfolio value changed over time

Tips for better backtests​

warning

Past performance does not predict future results. A backtest shows what would have happened, not what will happen. Always paper trade before going live.

  • Test across different market conditions — A strategy that works in a bull market may fail in a sideways or bear market. Test across different date ranges.
  • Watch for overfitting — If your strategy has many parameters tuned to a specific period, it may not generalise well. Keep it simple.
  • Account for commission — The default 0.1% commission is typical for major exchanges. Adjust if your exchange charges differently.
  • Check the trade count — A strategy that made 3 trades over a year isn't enough data to be confident. Look for strategies with a meaningful number of trades.