Backtest crypto strategies on full history.
Backtesting runs a strategy's rules on past market data to show how they would have performed. In The Market Lexicon, the rules you build are tested on full backtest history without code, and drawdown is always shown next to return.
Past results do not guarantee future performance.
Return and risk, side by side.
- Net return
- The total percentage gain or loss the strategy would have made over the tested period.
- Max drawdown
- The largest fall from a peak in the strategy's equity to a later low. It shows how painful the worst stretch would have been.
- Trades
- How many trades the rules produced. A result built on a handful of trades says far less than one built on many.
- Drawdown next to return
- The Market Lexicon always shows the two together, because a return means little without the risk taken to get it.
The same rules, from builder to history.
- 01
Build the rules
Write the strategy from plain conditions in the strategy builder.
- 02
Run it on history
The same rules run on full backtest history. Nothing is rewritten for testing.
- 03
Read return and risk
Net return, max drawdown and trade count appear together.
- 04
Refine or go live
Adjust the rules and test again, or switch on live monitoring.
What a backtest can't tell you.
- Overfitting. Rules tuned until they fit past data perfectly often fail on new data. Fewer, simpler rules usually hold up better.
- Small samples. A strong result from a handful of trades may be luck. Check the trade count before trusting a return.
- Changing markets. Conditions that worked in one period can stop working when the market's behaviour changes.
- The past is not the future. A backtest describes history. It does not predict or guarantee future performance.
(05) Questions
UpdatedBacktesting runs a trading strategy's rules on past market data to estimate how it would have performed. It shows return, drawdown and trade count before any money is at risk.
Both the Pro and Elite plans include full backtest history for crypto markets.
No. You build rules from plain conditions in the strategy builder, and the same rules are tested on history without any scripting.
No. A backtest describes how rules would have performed in the past. It cannot guarantee future results, which is why drawdown is always shown next to return.
You can refine the rules and test again, or switch on live monitoring so the tested rules are watched against the market.
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