Backtest
Our new trading model is ready, so let’s test it on historical data!
Last updated
Our new trading model is ready, so let’s test it on historical data!
Last updated
Now our new trading model is ready, let’s test it! We will perform a simulation using historical data. From the left column, we will select the parameters for our backtest.
First, we will set the duration of our backtest. Today is April 21st 2019, so let’s set the start date to one month ago, 21st March 2019. Then, we will set the initial capital which the strategy has available to begin with. Let’s leave the default value of 1000 USDT.
To simulate a real performance investment strategy, we can use the fee simulation for each buy and sell order. The structure of these fees is divided into two types — Maker fee and Taker fee. Maker Fee is a fee for transactions with LIMIT-type trading orders. Taker Fee is a fee transaction with MARKET or STOP orders. Both of these values are given as a percentage of the traded volume. Let’s leave the default values here too, which are set to standard fees of crypto exchanges.
We now have to select a market or, in other words, cryptocurrency pair on which we want to run our trading model. You will notice that, inside our trading model, we never used a statement defining that we want to trade any specific cryptocurrency pair. We designed Signals Framework so that you are now able to run your model over different assets by simply choosing them in the user interface. Let’s select BTC/USDT.
Now, we are ready to run a backtest. Just click the backtest button at the top right and your code will be compiled and the simulation will begin.