Creators on Mudrex create Algos on the basis of some underlying hypothesis. Once created there needs to be a way to test and validate this hypothesis.

Backtesting assesses the viability of a trading strategy by analysing how it would play out with historical data. It allows a Creator to simulate a trading strategy using historical data to generate results and analyse risk and profitability before risking any actual capital.

A well-conducted backtest that yields positive results assures traders that the strategy is fundamentally sound and is likely to yield profits when implemented in reality. A well-conducted backtest that yields suboptimal results will prompt traders to alter or reject the strategy.

There are many different metrics that can be used to measure the results of a backtest, the most commonly used are:

  • PnL
  • Annualised returns vs a benchmark (Or market returns)
  • Sharpe Ratio

At Mudrex, we provide one of the best backtesting platforms for your strategies, a product that significantly reduces the time you spend on optimising and validating your ideas. In the section below we explain everything you need to know about running Backtests

 

Running a Backtest

 

Traders create Algos on the basis of some underlying hypothesis. Once created there needs to be a way to test and validate the hypothesis out. Backtesting helps you validate if your strategy is working as expected.

Once a strategy is created, running a backtest is easy. 

1. Click on backtest

Backtest.png

 

2. You can then select the

  • Exchange
  • Market
  • Assets
  • Fees
  • Slippage
  • Candle period
  • Time period

to run the backtest. These parameters differ from market to market and can also vary depending on your strategy.

Run_Backtest.png

 

3. Run The Backtest

Once you run the backtest, it will take a few seconds for the backtest to complete and results to be generated. Do note that, for smaller Tick intervals (<15 Mins.) the processing time could take upto 10 minutes.

 

Start_Backtest.png

 

4. Check Backtest Summary

You can check a summary of the results directly once the backtest result is finished.

Backtest_Summary.png

5. Change Result Conditions

We have some quick action buttons on the summary page that users can use to check results in different conditions. Users can play with the date range, leverage and fees here

Change_Results.png

6. View Details

To view details of a backtest and fine-tune creation, click on the 'View Details' button

View_Details.png

 

For any queries, reach out to us at help@Mudrex.com

Test and publish your strategies on Mudrex, without any coding! Start today.

 

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