Backtesting
Test a strategy against historical data with real costs before risking money.
Backtesting means «testing backwards»: taking a strategy and seeing how it would have behaved in the past, using real historical data. TradingNote includes the real costs (commission, swap, spread), so the result is realistic and not an optimistic fantasy. It's the validation step before putting money on the line.
How it works
- 1
Choose what to test
You select the algorithm or strategy, the instrument, the timeframe and the historical date range to test over.
- 2
Run the backtest
The platform simulates, candle by candle, every trade the strategy would have made, applying the real costs.
- 3
Read the results
You get the equity curve, the metrics (Sharpe, Profit Factor, Drawdown…) and the list of simulated trades, to judge whether the strategy is worth it.
There are «heavy» backtests (long ranges or many combinations) whose monthly allowance depends on your plan. If you run out, you can continue next month or upgrade.
An excellent backtest does NOT guarantee future profits. Always combine it with the robustness filters in «My Algorithms» (DSR, Walk-Forward, Multiverse) to rule out overfitting.