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How to Use Cornix's Signals Bot BackTesting Feature
How to Use Cornix's Signals Bot BackTesting Feature

Optimize your trading strategies using historical data to maximize your performance

Hadar Cornix avatar
Written by Hadar Cornix
Updated over 5 months ago

Backtesting is a method used in trading and investment to evaluate the effectiveness of a trading strategy by applying it to historical market data. This process allows traders to understand how a strategy would have performed in the past, helping to assess its potential profitability and risk before deploying it in live markets.

This guide will walk you through the steps of running backtests on your signals bots.

Step 1: Select a Trading Strategy to Test

  1. Navigate to the signals bots section and click the "Create Bot" button on the top right corner of the screen to enter the bot's creation screen.

  2. Proceed to set the trading strategy you want to test for your bot. Choose your desired bot configuration from a selected signals channel or customize using advanced settings.

  3. Click the Backtesting button to run the backtest. The test will use the bot's selected signals channel, exchange account, and configuration.

Step 2: Choose the Backtest Name and Set its Time Frame

Select a name that you can easily track later for reviewing and comparing backtest results. Define the time frame for the backtest by selecting specific dates or a range of historical data to analyze the strategy's performance over that period.

Step 3: Set Initial Funds

Specify the amount of capital to be used as initial funds for the historical test. Note that both the initial funds and the amount per trade chosen can affect the results, as the number of signals selected as trades depends on the amount.

The number of signals published during the selected period will be displayed in parentheses next to the coin. The displayed coins are based on the signals published in the selected channel within the exchange account during the chosen timeframe.

Step 4: Initiate the Backtest

Once all parameters are set, click the 'Start' button to process the historical data based on your strategy and parameters within the selected timeframe.

  • All activities from the trades that would have opened based on the channel signals will start to show, including all order actions. You will see the accumulated profit of these trades on the graph.

  • All tests performed will be saved in the backtesting history of the selected channel and exchange account.

Step 5: Review Results

After the backtest is complete, review the detailed metrics provided by Cornix, including:

  • Total Profit/Loss: The overall financial result of the backtest.

  • Number of Trades Executed: The total number of trades performed during the backtest.

  • Win/Loss Ratio: The ratio of winning trades to losing trades.

  • Maximum Drawdown: The maximum percentage decline between the highest and lowest points of the portfolio within the selected time frame.

Read more about the backtest results and statistics.

Step 6: Optimize Your Strategy and Run Additional Tests

Based on the backtest results, adjust your strategy parameters to improve performance. Run multiple backtests with different parameters to find the optimal settings for your strategy.

Step 7: Deploy the Optimized Strategy

Apply Configuration

Once you are satisfied with your backtest results, deploy the optimized strategy by applying the configuration from a successful backtest to your bot. Click the 3 dots menu on the desired backtest result and click "Apply Configuration".

Unapply Configuration

Revert to previous configurations if the applied settings do not perform as expected by using the "Unapply Configuration".

Important Notice: Past results do not guarantee future outcomes.

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