Best for: Brand-new to backtesting
Backtesting basics, in plain language
What a backtest actually answers, what the numbers mean, and which results to trust before risking real money.
Key concepts
- Strategy
- A specific set of rules that decide when to enter a trade, when to exit, and how much to risk on each one.
- Backtest
- Replaying those rules on historical price data to see what would have happened if you had been running them all along.
- Win rate
- The share of trades that closed at a profit. A high win rate alone does not mean a strategy is good — small wins and large losses still net to a loss.
- Max drawdown
- The worst peak-to-trough drop in account equity during the test. This is the pain you would have lived through to get the final result.
- Profit factor
- Total profit divided by total loss. Above 1 means the strategy made more than it lost; near 1 means there is no real edge after fees.
How this looks in Traseq
Start from a template strategy in your free workspace.
Pick a market and a timeframe — for example, BTC/USDT on 1-hour bars.
Run the backtest. Traseq returns the equity curve, win rate, max drawdown, and profit factor in one view.
Open the trade list and confirm the rules behaved the way you expected, trade by trade.
Your next step