Your First Strategy

Step-by-step walkthrough to create, backtest, and analyze your first trading strategy with Backtrex in under 5 minutes.

Overview

In this guide, you will create a simple Moving Average Crossover strategy, backtest it on EUR/USD, and analyze the results. No coding required.

Step 1: Open the Strategy Builder

From the dashboard, click New Strategy or open an existing blank strategy. You will see an empty canvas with three sections:

  • Entry Conditions (top): Define when to open a position
  • Exit Conditions (middle): Define when to close a position
  • Risk Management (bottom): Configure stop-loss and take-profit

Step 2: Add Indicator Blocks

Open the block palette on the left side of the canvas. Under the Indicators category:

  1. Drag a Moving Average (MA) block into the Entry Conditions section
  2. Configure it: Period = 20, Type = SMA
  3. Drag another Moving Average (MA) block next to it
  4. Configure it: Period = 50, Type = SMA

Step 3: Add a Logic Block

From the Logic category in the palette:

  1. Drag a Comparison block between your two MA blocks
  2. Set the comparison mode to Crosses Above
  3. Connect the MA(20) output to the first input and the MA(50) output to the second input

This creates the entry rule: "Buy when the 20-period MA crosses above the 50-period MA."

Step 4: Add an Exit Condition

For the exit, use the opposite crossover:

  1. Add two more MA blocks in the Exit Conditions section (same parameters: 20 and 50)
  2. Add a Comparison block set to Crosses Below
  3. Connect them the same way

Step 5: Configure Risk Management

In the Risk Management section:

  1. Add a Stop-Loss block and set it to 2% below entry price
  2. Add a Take-Profit block and set it to 4% above entry price

Step 6: Run the Backtest

  1. Click the Backtest button in the header
  2. Select EUR/USD as the asset
  3. Choose a date range (e.g., last 5 years)
  4. Select the D1 (daily) timeframe
  5. Click Run Backtest

Results appear within seconds, showing:

  • Total Return: Overall profit/loss percentage
  • Win Rate: Percentage of profitable trades
  • Max Drawdown: Largest peak-to-trough decline
  • Sharpe Ratio: Risk-adjusted return measure
  • Equity Curve: Visual representation of your portfolio value over time

Step 7: Analyze and Iterate

Review the trade list to understand each entry and exit. If results are not satisfactory:

  • Adjust MA periods (try 10/30 or 20/100)
  • Add filters (e.g., RSI above 50 for trend confirmation)
  • Modify stop-loss and take-profit levels

Next Steps