How to Use Backtest Funtion?

Once you’ve set up everything, you can click the “Backtest” function at the bottom left to evaluate the performance of your strategy combination and parameters using historical data.

“Net Profit”, the actual return over the backtest period, for example, the past 359 days and 16 hours, minus trading fees. The return rate is shown in parentheses.

“Max Drawdown”, the maximum loss the strategy could experience during the backtest period, including realized losses and floating losses. Generally, the net profit to maximum drawdown ratio should be at least 3:1.

“Win Rate”, the ratio of profitable closed orders to total closed orders, typically over 40%.

“Average Profit”, the average profit per order. The larger this number, the better. It is recommended to be no less than 0.5%. An average profit above 0.5% usually covers slippage costs.

“Closed Trades”, the total number of closed orders during the backtest period. Aiming for 1 closed order per day, or 1 every two days, can help reduce transaction fees and slippage costs.

“Max Serial Loss Trades”, the number of consecutive losing orders. The smaller this number, the better, ideally no more than 7. This metric will reset once a profitable order appears. Continuous losses can lead to significant psychological pressure, making it essential to keep this number low.