Backtesting Weapons

Backtesting allows you to test a weapon against historical market data to see how it would have performed.

Why Backtest?

• Validate Strategy: See if your logic produces profitable trades
• Understand Risk: Identify potential drawdowns and losses
• Optimize Parameters: Find the best settings for your strategy
• Build Confidence: Gain trust in your weapon before going live

Past performance does not guarantee future results. Backtests are simulations and don't account for slippage, fees variations, or market impact.

Running a Backtest

1. Go to WEAPONS page
2. Click on the weapon you want to test
3. Click BACKTEST
4. Configure parameters:
   • Date Range: Historical period to test
   • Trading Pairs: Which pairs to include
   • Stake Amount: Simulated trade size
5. Click START BACKTEST

Backtest Results

After the backtest completes, you'll see:

Summary Statistics

Metric	Description
Total Profit	Net profit/loss in percentage
Win Rate	Percentage of winning trades
Total Trades	Number of trades executed
Profit Factor	Gross profit / Gross loss
Max Drawdown	Largest decline from peak
Avg Trade Duration	Average holding time

Trade List

A detailed list of all simulated trades showing:

• Entry time and price
• Exit time and price
• Profit/loss per trade
• Trade duration

Equity Curve

A chart showing portfolio value over time, useful for visualizing:

• Overall trend (up = profitable)
• Drawdown periods
• Recovery patterns

Interpreting Results

Good Signs

Win Rate > 50% with Profit Factor > 1.5

Max Drawdown < 20% indicates controlled risk

Consistent profits across different market conditions

Warning Signs

Very high win rate (>90%) might indicate overfitting

Large drawdowns suggest high risk

Few trades may not be statistically significant

Backtest Parameters

Date Range

Choose a period that includes:

• Bull markets (uptrends)
• Bear markets (downtrends)
• Sideways markets

Testing across different conditions shows strategy robustness.

Trading Pairs

Start with major pairs:

• BTC/USDT
• ETH/USDT

Then expand to test on more volatile altcoins.

Stake Amount

Use realistic amounts:

• Too small: Results may not scale
• Too large: May not reflect actual liquidity

Limitations of Backtesting

Backtests are approximations. Real trading differs due to:

• Slippage: Order execution at different prices
• Fees: Actual fees may vary
• Liquidity: Large orders move the market
• Latency: Delays in order execution

Best Practices

1. Test Long Periods: At least 6-12 months of data
2. Include Different Markets: Bull, bear, and sideways
3. Don't Over-Optimize: Simple strategies often work better
4. Validate with Forward Testing: Use DRY RUN mode for real-time validation
5. Review Individual Trades: Understand why each trade was made