Backtest your systematic trading strategies

Backtesting is the process of testing a trading strategy against historical market data to simulate its potential performance. It helps you gain insights into a strategy’s strengths and weaknesses before risking real capital.

How can I get started?

1. 1. Click on the “Strategy” icon on the left menu.
   2. Click on “Backtest“.

Creating a Backtest

1. Click “Create Backtest.“
2. General Settings
   • Name: Give your backtest a descriptive title.
   • Description: Add a brief explanation of your strategy.
3. Data to Test
   • Date: Select your desired start and end dates.
   • Bars Deep: How much historical data to backtest.
   • Precision: Candle size (e.g., 1 minute, 1 hour).
   • Side: Long or Short trades.
   • Trade By: Price point on a candle for evaluation (e.g., close price).
   • Extended Hours: If backtesting stocks, choose whether to include pre/post-market data.
   • Tickers: Select the asset(s) for your test. Start with one, then add more once you’ve verified that the backtest functions properly.
4. Account Details
   • Initial Capital: Realistic starting balance.
   • Cash Sharing (Multi-Ticker Tests Only): Decide if you want to split capital.
   • Commissions: Set default amount.
5. Entry Conditions
   • Click “+” to add an entry rule.
   • Select from 70+ indicators, 100+ candlestick patterns, or basic price conditions.
   • Example: “RSI (14) crosses above 70.”
6. Exit Conditions
   • Follow the same “+” process.
   • IMPORTANT: Stop losses and targets take priority over indicator/candle conditions.
   • Aim to include at least a stop loss and a target.

Considerations:

• Click on indicator names to fine-tune their parameters.
• To run a backtest, you must fill up all the required fields detailed above in this article. Only once you fill up all this information, you will see the “Run Backtest” button.

Running a Backtest

• Once your strategy is defined, click “Run Backtest“
• This may take a few seconds to minutes, depending on your settings.

Analyzing Backtest Results

The results page provides a summary of your backtest’s performance.

Key Metrics: Win Rate, Profit Factor, Expectancy, Drawdowns, and more.

 

Deeper Analysis with TraderSync Analytics

• Click “Export Trades” to create a portfolio of your backtest results.
• Analyze further within TraderSync Analytics to pinpoint areas for improvement.

 

Remember

• Backtesting is an iterative process. Test, refine, and retest!
• Beware of overfitting your strategies to the past.