Backtesting plays a crucial role in any trading plan.
Backtesting provides traders with an opportunity to evaluate and optimize their strategies before implementing them in real-world markets. It delivers vital statistics, such as P/L, win/loss ratios, and much more.
Step 1: Create a Strategy
The first step is to create a strategy to backtest - this process is the same as creating any strategy on Capitalise.ai.
Once you’ve set up your entry condition, click "Next" and then enter your exit condition(s) - these are essential for running a backtest.
Step 2: Run the Backtest
Next, click "Next" again and select "Backtest."
Once the backtest is complete (which won’t take long), you'll see the results displayed in easy-to-read widgets.
Customizing the Backtest Period
If you'd like to adjust the time frame of your backtest (for less than 90 days), simply click the calendar icon next to the "Backtest" button:
From there, you can:
Specify the dates for your backtest period.
Select specific dates on the calendar.
Choose from the suggested periods.
Once everything is set, click "Run Backtest" to proceed.
Editing the Backtest
You can edit your backtest or rerun it as needed. If you’re satisfied with the results, you can immediately "Replicate as Real" to begin trading live.
Click on the following links to continue learning how to analyze your results and how backtesting works.
Note: All screenshots and examples are for technical demonstration purposes only. They should not be considered as recommendations for any specific trading strategy, nor do they constitute any form of advice. Please click here for further explanation