Backtest is a very important part of creating a strategy. It will allow you to see how your strategy behaves in different market conditions. You can perform backtests for different periods with a variety of market behavior. This will show you the strengths and weaknesses of your strategy, when to start it and when to hold it down.
Backtest trades and live trading trades or simulation trades may not be exactly the same. Historical ASK/BID prices are not provided by the exchanges. So exact open and close prices cannot be reproduced. This may lead to a different open price in the backtest, which in turn can lead to different close prices and consequently different subsequent trades. However, in general, in the long run, backtest results should be very simillar to the real results of trading, performed in close market conditions to those of the backtested period.
To run a backtest firstselect the strategyfrom the group table. On theActionspanel click on Backtest. Enter your setup and start the backtest. The backtest will start under recent. When it is ready click it to see the results or directly go to the Results section. The last 15 backtests of the strategy will appear under Recent. If you edit the strategy recent backtests will be deleted.
The backtest setup lets you choose:
- time period for which you want the coin to be backtested. Choose larger periods to capture diverse price moves or rerun the backtest on different small periods.
- trade size is good to be set. During real trading it can be hard to get in and out of position with big trade size on illiquid coin. Big trade sizes on illiquid coins can move the price of the coin while they are being filled. This can turn profitable positions into losing ones. If you enter trade size, the backtest will account for it in the open and close price of the trades.
- commission rate - you can adjust it according to the commission for your exchange account
In the Backtest results you can see the performance, check the trades on the chart and inspect their details.
On the table with positive/ negative trades or in the Trades List click on a trade to see it on the candle chart. Trades list gives you details about all trades made by the strategy. Results include the set commission rate.
Strategies with two timeframes:When your strategy has two different timeframes the candlestick chart will also have two timeframes. The indicators will be displayed on the timeframe corresponding to their rule timeframe.
Only one trade can happen during one candle on the smaller timeframe. One candle on the bigger timeframe can hold many trades.