Backtesting & optimization

Run backtests, tune parameters, and interpret results.

Run a backtest

1

Prepare the strategy

• Ensure Market Data exists.

• Ensure at least one Buy Order or Sell Order exists.

• Check all required inputs are connected.

2

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).

3

Run and review

Review:

• Total return, Sharpe, max drawdown, win rate.

• Trade statistics (profit factor, avg return).

• Equity curve.

• Executed trades list.

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.

Optimization can overfit. Validate on a separate date range.