A Backtest applies one selected strategy configuration to historical market data and shows how that setup behaved over the tested period.
It is usually the simplest research method to start with because only one configuration is tested at a time.
Choose one strategy configuration
Start with the strategy settings you want to examine.
Depending on the strategy, this may include settings such as:
- strategy parameters
- stop loss
- target
- candle or pattern settings
- trading-cost settings
The Strategy Detail page explains what each strategy-specific setting controls.
Select the historical data
Choose the dataset you want to use for the test.
The Backtest applies the selected strategy rules to that historical period and records the trades that meet those rules.
The dataset structure, timeframe, and historical coverage can affect the result, so it is useful to keep those details in mind when comparing tests.
The strategy rules are applied in sequence
The test follows the strategy's configured entry and exit rules through the historical candles.
When a valid entry appears, the trade follows the relevant stop loss, target, time exit, opposite-signal, or end-of-data rules supported by that strategy.
The exact sequence can differ between strategies, so the Strategy Detail page remains the main reference for strategy-specific behavior.
One configuration produces one result
Unlike Parameter Sweep, a Backtest does not compare many parameter combinations.
The result belongs to the single configuration you selected.
This makes Backtest useful when you want to:
- examine one setup closely
- understand how its trades were generated
- review its historical performance
- create a baseline before testing other configurations
What the result contains
A completed Backtest can include:
- Net P&L
- Max Drawdown
- Win Rate
- Profit Factor
- Sharpe
- trade history
- equity
- drawdown
- other configuration and execution details shown on the Result Review page
These different parts help you understand the result from more than one angle.
Use Backtest as a research starting point
A Backtest can help answer a simple question:
From there, you can adjust the setup, compare another Backtest, use Parameter Sweep to test many configurations, or move to Walkforward when you want to study how selected settings behave on later periods.
Where to go next
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