Backtesting

Backtesting is the process of running a trading strategy against historical price data to estimate how it would have performed.

A backtest replays bars one at a time, applying the strategy's rules and recording trades, profit and loss, win rate, drawdown and risk-adjusted metrics. Realistic backtests model slippage and commissions and avoid look-ahead bias. Algovex includes a bar-by-bar backtesting engine with full metrics.