What is Backtesting and How to Backtest a Trading Strategy

Backtesting is the process of testing a trading strategy or system on historical data, in order to evaluate its potential profitability and risk. It involves simulating the execution of trades in the past, using a trading algorithm or system, to see how the strategy would have performed in different market conditions.

Backtesting can be a valuable tool for traders who want to improve the performance of their trading tstrategies and make more informed decisions about which strategies to use in real trading.


You can now backtest more than crypto! Dive into the vast world of Forex, Stocks, Indices, ETFs, Commodities, and more.

Watch the video walkthrough:

Once you're logged in into Vestinda app, you can use our ready-made trading strategies from the Strategy Library or create your own trading strategy using our no-code builder either from scratch or starting from a template.

Step 1

Go to the the Strategy details page.

If you're just building your strategy, click on the "Backtest" button on the right side of your screen.

If the strategy was already created:

If you're on the "Demo Investing" tab or any other tab than "Strategy Builder": click on the dropdown arrow next to the button on the right and then click on "Backtest".

Step 2

Once you've clicked on "Backtest", you'll see the "Backtest" overlay.

You can now backtest your strategies on more than crypto: Forex, Stocks, ETFs and Indices.

Filter them by asset class, search specific asset and scroll to load more assets.

Step 3

Once you've chosen your asset, you can also change the period for backtesting. Then, click on the "Start Backtest" button to start your backtest. 

Step 4

Backtesting usually takes a few seconds until the results are shown.

You can click on the "See full results" link and you'll see the full backtesting results.

Fees for Backtesting are calculated and taken into consideration in the results.

A 0.1% fee is used for Backtesting.

Congrats! 🎉

You're now validating your trading ideas using backtesting

You can also test your strategy in Demo Mode and once you're confident enough, you can start Real Trading.

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