The Importance of Backtesting Data
Before an engineer builds a bridge, they simulate the load implementation. Before you deploy capital, you must simulate the trade strategies. This is Backtesting.
How Our Backtester Works
Most backtesters are "optimistic"—they assume you bought the exact low. Ours is "pessimistic."
- Fee Inclusion: We deduct 0.1% exchange fees from every trade.
- Slippage Simulation: We assume you bought slightly higher than the chart price (simulating real market friction).
Overfitting: The Danger Zone
A common trap is tweaking parameters until the backtest shows 1000% profit. This is curve-fitting to the past.
- Solution: Walk-Forward Testing. We train the AI on 2023 data, then test it on 2024 data (which it has never seen). If it survives 2024, it's robust.
Strategy Selection
Use backtesting to pick the right tool:
- Did DCA beat holding?
- Did Grid Trading survive the crash?
Trust the data, not the hype.
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