Backtesting & Simulation

Backtesting and simulation tools allow users to evaluate strategy behavior on historical data before trading with real capital. This encourages evidence-based strategy design.

What It Is

The backtesting module runs a strategy on past market data to show hypothetical performance. Simulation can also include forward-testing in paper trading mode, where the strategy runs on live data without placing real orders.

How It Works

Users select a strategy or template, choose markets, time ranges, and key parameters, then run a backtest. The system calculates metrics like win rate, drawdown, average trade duration, and equity curves. Simulations can be repeated with different parameters to explore robustness.

Who It Is For

• New users who want to see example results before risking funds

• Traders optimizing entries, exits, and risk settings

• Advanced users validating strategies across multiple market regimes

Risks It Helps Reduce

Backtesting may help reduce the risk of deploying untested strategies. However, past performance does not guarantee future results. Overfitting to historical data is a serious risk, and users should treat backtests as one input in a broader evaluation process.

Connection to STB and CRA

Once a strategy passes the user’s criteria in backtests and simulations, it can be deployed to STB for live or paper trading. CRA then monitors real-world performance to see whether live results align with backtest expectations.