What is backtesting?
Every trading idea and strategy begins with a hypothesis, but how do you know if it works? Backtesting describes the process of applying a strategy to historical trading data. Good results will inspire confidence in the trader, and may convince them to use live funds.
Backtesting with Tuned
Tuned backtesting achieves the definition above, and delivers more. Our results include full simulated trade history, and several accompanying metrics, like maximum drawdown or percent of trades that were profitable. We want to help paint a picture of what it would feel like if you ran a backtested strategy live.
What is batchtesting?
Batchtesting is backtesting on steroids, allowing multiple concurrent backtests for the same strategy. So in the same way that you might test MACD on two years of ETH/USD historic data, batchtesting lets you run up to 50,000 backtests concurrently. This renders any manual testing efforts obsolete. We want you to spend your time prototyping strategies and making ideas reality.
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Mitigate overfitting
When backtesting, you’ll want to validate your strategy across several types of market conditions, the main ones being bear markets, bull markets, and sideways markets. This helps understand if your strategy is actually capable of adapting to market conditions.
Another consideration is in-sample and out-of-sample testing. In-sample means validating your strategy on a limited portion of the available historic market data. By intentionally setting a portion aside, your out-of-sample data becomes a pseudo live-test. So, when you think your strategy is ready for live performance, you can instead test it on your out-of-sample data and find out if it’s really capable of adapting.
