# Backtesting & optimization

### Run a backtest

{% stepper %}
{% step %}

### Prepare the strategy

* Ensure **Market Data** exists.
* Ensure at least one **Buy Order** or **Sell Order** exists.
* Check all required inputs are connected.
  {% endstep %}

{% step %}

### Configure

* Symbol and timeframe are pulled from **Market Data**.
* Set a date range or period (example: `2y`, `30d`).
* Confirm trading direction (auto or manual override).
  {% endstep %}

{% step %}

### Run and review

Review:

* Total return, Sharpe, max drawdown, win rate.
* Trade statistics (profit factor, avg return).
* Equity curve.
* Executed trades list.
  {% endstep %}
  {% endstepper %}

### Trading direction

#### Auto-detection

* Long only: only buy orders.
* Short only: only sell orders.
* Long & short: both.

#### Manual override

Use the backtest configuration to override auto-detection. Manual selection wins.

### Optimization mode

Use optimization when a strategy is stable. Keep trials low until the graph is correct.

* Choose optimization metric (Sharpe, total return, profit factor).
* Set number of trials (example: `50` to start).
* Enable parallel execution if available.

{% hint style="warning" %}
Optimization can overfit. Validate on a separate date range.
{% endhint %}


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