Backtesting is the process of testing a trading strategy back in time to see how it would have performed on historical data, and to find any potential improvements that could be made.
With Ganium you can backtest your bot configuration right from the bot creation page, so you can get a sense for past performance. This way you can make the necessary adjustments and and deploy your bot when you are satisfied with the backtesting results.
You should know that there are pros and cons to using backtesting.
Backtesting will never be able to perfectly replicate real-world trading conditions, so there is always a risk that your strategy may not perform as well in the future as it did in the past. With that said, backtesting can still be a valuable tool if used correctly. Backtesting can help you to improve and optimize your trading strategy, and it can give you confidence in your strategy before putting it into use with real money.
Moreover, while sometimes backtesting can give better than real trading results, it does not give worse results than real trading. This means that if a strategy have poor performance on a backtest, it would have definitely have performed poorly in real trading. Therefore, backtesting is a good first-pass filter, helping you avoid using under-performing strategies.
When backtesting a crypto trading bot, there are a few things to keep in mind:
To backtest a trading strategy, click on “Trading bots” on the sidebar and then “+ New” to launch the new bot page. Here you can set the desired configuration for your bot, including deal start condition, Take Profit, Stop loss, DCA, etc. Then click the “Backtest” button at the bottom. The backtesting results will show in the panel underneath.
At Gainium, we understand that backtesting is an important tool for every trader. Our goal is to create the most reliable backtesting system in the market. So while we are happy to launch the backtesting module, there is still a lot of work to be done.
Stay tuned for more updates soon!