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Welcome to our platform's backtesting feature! Backtesting is a powerful tool that allows you to evaluate the performance of an investment strategy using historical data. By simulating how a strategy would have performed in the past, you can gain insights and make more informed decisions for the future. However, it is essential to remember that backtesting relies on historical data, and past performance does not guarantee future results.
With that in mind, let's dive into the steps to run a backtest on our platform.
How to Run a Backtest
Once you've logged into our platform, navigate to the Backtest tab. This is where you can access all the tools and features related to backtesting.
Click on the "Create a new backtest" button to start the process of setting up a new backtest.
Specify the initial investment amount for your backtest. You can either choose a predefined amount or enter a custom value based on your preferences.
Select the timeframe for your backtest.
Decide on the rebalance schedule for your backtest. You have two options: periodic or threshold. The periodic rebalance schedule allows you to set specific intervals for rebalancing, such as hourly, weekly, etc. On the other hand, the threshold rebalance schedule triggers rebalancing when a certain percentage deviation from the target allocation is reached.
Specify the trading fee you want to consider for the backtest. This fee represents the cost of buying or selling cryptocurrencies and is an essential factor to include for more accurate performance evaluation.
Now, it's time to choose the cryptocurrencies you want to include in your backtest. You can either allocate them equally or set a custom allocation for each cryptocurrency, depending on your investment strategy. The total allocation must equal 100%
Once you have completed all the necessary settings, click on the "Run Backtest" button to initiate the backtesting process. After the backtest has run, you will be presented with the results. Our platform will display a comparison between the performance of holding the cryptocurrencies throughout the selected timeframe versus the performance achieved through rebalancing according to your chosen strategy.
Click Save to save the backtest to review at a later time.
Select Edit to make any changes to the backtest. This will display the Create Backtest box again.
You can view previously saved backtests anytime, by clicking the saved backtest you wish to view.
This will display a View Backtest box. You can see the details of the saved backtest. Select Load Backtest to redisplay the backtest options.
Select Run Backtest to redisplay the backtest results.
Running a backtest on our platform is a valuable way to assess the historical performance of your investment strategy. Remember, while backtesting provides insights, it is crucial to exercise caution and not solely rely on past performance when making future investment decisions. Embrace the power of backtesting as a tool to guide your decision-making process and enhance your understanding of different strategies. Happy backtesting!
Have questions, comments, or concerns? Feel free to reach out to us via the blue "Support" button found in the bottom left corner of your Dashboard, or send an email to Support@Shrimpy.io.