The Solution: What is Backtesting?
Imagine scrolling through YouTube or Twitter and seeing a video titled "100% Winning Trading Tactic that Works Perfectly." The person in the video combines two indicators and claims to have made amazing money. What would your first reaction be?
Most amateur investors immediately rush to the exchange, invest all their savings in that coin, and start trying this "miraculous" tactic with their own money. However, a few days later, they face the bitter truth: The tactic actually doesn't work and the money has melted away.
Trying a new strategy directly with real money is not investing, it is literally gambling. Opening a trade without testing your data is no different from betting money on black at the roulette table.
"How much would this strategy have made in the past?"
This is the only question crypto millionaires and massive investment funds ask themselves. The system that provides the answer to this is called Backtest.
A backtest is the virtual execution of a trading strategy or bot you have set up on historical market data (e.g. past 1 year, past 6 months). The system goes back in time, simulates the market second by second as if it were under the conditions of that day, and trades according to your rules. When the process is finished, it presents you with a clear report: "If you had used this strategy for the last 1 year, you would have made a 40% profit" or "If you had used this, your money would have melted by 80%."
Don't Lose Money to Find Out a Strategy is Bad
Manual traders spend weeks of time and lose thousands of dollars to realize that a strategy is bad. Smart investors (Algorithmic traders), on the other hand, learn that a strategy is bad in a Backtest that takes only 10 seconds, without losing a single penny.
Backtesting doesn't just show you the profit. It presents you with clear mathematics on the maximum number of consecutive times you will lose (Max Drawdown), the market conditions where your strategy is weak, and your win rate. Numbers never lie.
Go back years in seconds and prove the real power of your strategy.
Test Your Strategy for Free Right Now!
Do you have a trading tactic you want to try? Stop gambling by trying it out with real money.
Download our AlgoSaaS mobile app right now. Thanks to the "Watch Video, Earn Coins" (Rewarded Ads) feature within the app, you can instantly earn free AlgoCoins by watching a short ad that takes seconds!
With these AlgoCoins you have earned, run your first Backtest for free and see with your own eyes how much your strategy really made in the past. Don't risk it, test it!