Backtesting
Backtesting Platform for Trading Strategy Validation
Validate strategy behavior before risking capital. Use backtesting to check rule quality, consistency, and drawdown assumptions in a structured workflow.
How it works
Step 1
Define the strategy blueprint and risk assumptions.
Step 2
Run backtests across historical market data and conditions.
Step 3
Review metrics, trade distribution, and failure modes.
Step 4
Adjust rules and retest before paper trading.
Features for Backtesting
- Backtesting workflow linked to strategy blueprints
- Metrics review and post-test analysis
- Risk rule validation before paper trading
- Process documentation and iteration support
- Internal linking to paper trading and risk docs
Use cases
In-depth guide
What good backtesting should answer
Backtesting should answer whether a strategy behaves as expected under different market regimes, not just whether total return is positive.
Key outputs include drawdown profile, recovery speed, expectancy stability, and sensitivity to execution assumptions.
If small parameter changes collapse performance, your setup may be overfit and should be simplified before any live trial.
Backtest to paper-trade handoff
Backtesting validates historical behavior. Paper trading validates operational behavior with live data flow, spread changes, and event timing.
Keep acceptance criteria defined before handoff: minimum sample size, max allowed drawdown, and failure conditions that require rollback.
The handoff is complete only when live-sim behavior stays within expected ranges derived from your backtest review.
FAQ
What does "backtesting" mean on Setup.Cash?
It means using a visual workflow to define strategy validation and performance review rules, test the setup, and run it with documented risk controls. The platform is a builder and research workflow, not a guarantee of performance.
Do I need coding skills to use the builder?
No. You can create rule-based blueprints in a no-code interface. Optional advanced logic and indicators can be layered in gradually as your process matures.
Can I backtest before using real money?
Yes. A core workflow is strategy definition, backtesting, and paper trading before any live execution. This helps identify rule issues and reduce avoidable mistakes.
Does Setup.Cash support forex, crypto, and stocks?
The platform is designed for strategy building workflows across forex, crypto, and stock-market use cases. Market availability depends on your data, broker, and execution setup.
Is this financial advice or a profit guarantee?
No. Setup.Cash provides software tools for strategy design, testing, and operational discipline. Trading involves risk, and outcomes depend on market behavior and user decisions.
What should I measure after building a strategy?
Track win/loss distribution, expectancy, drawdown, trade frequency, average hold time, and whether the strategy behavior matches the original blueprint assumptions.
Start here
Build your trading bot workflow with structure
Use Setup.Cash to create, backtest, and paper trade rule-based strategies without relying on guesswork. Not financial advice. Trading involves risk.
Disclaimer
Not financial advice. Trading involves risk. Use backtesting and paper trading to validate assumptions before considering live execution.