Running Backtests

Learn how to select an asset, configure date range and parameters, and run a backtest on your strategy.

Overview

Once your strategy is ready on the canvas, running a backtest is straightforward. This guide covers asset selection, date range configuration, backtest parameters, and execution.

Selecting an Asset

Backtrex supports 16 assets across four categories:

Forex: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, EUR/GBP, NZD/USD

Commodities: XAU/USD (Gold), XAG/USD (Silver), WTI (Crude Oil)

Indices: US500 (S&P 500), US30 (Dow Jones), US100 (Nasdaq), DE40 (DAX)

Crypto: BTC/USD (Bitcoin), ETH/USD (Ethereum)

Click the asset selector in the backtest configuration panel to choose your asset.

Choosing a Date Range

Select the start and end dates for your historical data window. Consider:

  • Longer ranges (5-10 years): Better statistical significance, captures multiple market cycles
  • Shorter ranges (1-2 years): Useful for testing on recent market conditions
  • Minimum recommended: At least 1 year of data for meaningful results

Configuring Parameters

Timeframe

Choose the bar timeframe for your backtest:

  • M1 (1 minute): Highest resolution, best for scalping strategies
  • M5 (5 minutes): Good for intraday strategies
  • M15 (15 minutes): Popular for day trading
  • H1 (1 hour): Standard for swing trading setups
  • H4 (4 hours): Captures larger moves with less noise
  • D1 (Daily): Ideal for position trading and trend following

Initial Capital

Set your starting capital (default: $10,000). This affects position sizing calculations and absolute P&L figures.

Position Size

Configure how much capital to allocate per trade:

  • Fixed percentage: A percentage of current equity per trade (e.g., 2%)
  • Fixed amount: A fixed dollar amount per trade

Running the Backtest

  1. Click the Backtest button in the strategy builder header
  2. Verify your configuration (asset, dates, timeframe, capital)
  3. Click Run Backtest

The engine processes the historical data and returns results in under 30 seconds, even for multi-year datasets.

Cancelling a Backtest

If a backtest is taking longer than expected, click the Cancel button to stop execution. This immediately halts processing and returns you to the builder.

Backtest Queue

If you launch multiple backtests, they are queued and processed sequentially. You can see the queue status in the backtest panel.

Understanding Results

After the backtest completes, you will see:

  • Performance Metrics Dashboard: Key statistics (Total Return, Win Rate, Sharpe Ratio, etc.)
  • Equity Curve: Visual chart of portfolio value over time
  • Trade List: Every trade with entry/exit prices, dates, and P&L
  • Monthly Returns Heatmap: Color-coded monthly performance grid
  • Backtest Score: 0-100 composite score rating your strategy

For a detailed explanation of each metric, see Understanding Metrics.

Tips

  • Always backtest on multiple assets to validate strategy robustness
  • Compare results across different timeframes
  • Use the Buy & Hold benchmark to see if your strategy outperforms simply holding the asset
  • Save promising backtests for later comparison