Running your first backtest is straightforward. The Backtest Suite guides you through a step-by-step process: select a strategy, choose your market and timeframe, define a date range, configure parameters, launch the test, and review the results. This guide walks you through each step of the planned workflow so you know exactly what to expect.

Before You Begin

To use the Backtest Suite, you will need:

• An active Volensy membership with Backtest Suite access.
• A modern web browser (Chrome, Firefox, Safari, or Edge).
• A basic understanding of what backtesting is. If you have not read it yet, start with the overview. *See: Backtest Suite Overview*

Step 1: Open the Backtest Suite

From your Volensy dashboard, locate Backtest Suite in the sidebar navigation. Click it to open the suite in a new browser tab. The suite loads as a standalone application with its own full-screen interface, similar to the Signals Panel.

When the suite opens, you will see the configuration workspace: a clean interface with input controls for setting up your backtest parameters.

Step 2: Select a Strategy

The first configuration choice is which strategy to test. A dropdown selector will list all available Volensy strategies. Each strategy represents a distinct set of trading rules — different entry conditions, exit logic, and indicator combinations.

When you select a strategy, the suite will display a brief description of how it works, what indicators it uses, and what types of market conditions it is designed for. This context helps you understand what you are about to test.

Tips for Strategy Selection

• Start with a familiar strategy. If you have been reviewing signals in the Signals Panel, choose the same strategy so you can compare backtest results against the live signal record.
• Test one strategy at a time. It is tempting to jump between strategies, but you will learn more by thoroughly testing one before moving to the next.

Step 3: Choose Market and Timeframe

Next, select the market (cryptocurrency pair) and chart timeframe for your backtest.

Market Selection

Choose from the available cryptocurrency pairs (e.g., BTCUSDT, ETHUSDT, SOLUSDT). The market you select determines which historical price data the backtest will run against.

Timeframe Selection

Choose the candlestick timeframe (e.g., 15m, 1h, 4h, 1D). Timeframe affects everything:

• Shorter timeframes (15m, 1h) produce more candles, more potential trade setups, and more granular results. Backtests take slightly longer to process but give you a high volume of trades for statistical analysis.
• Longer timeframes (4h, 1D) produce fewer candles and fewer trades but each trade captures a larger price move. Results may be less statistically robust due to the smaller sample size.

Step 4: Set the Date Range

Define the historical period you want to test against. You will set two dates:

• Start date — The beginning of the historical period. The backtest will start processing data from this date forward.
• End date — The end of the historical period. The backtest will stop processing data at this date.

Choosing a Good Date Range

• Longer is generally better. A 6-month to 1-year range gives the strategy enough data to demonstrate its behavior across different market conditions (trending, ranging, volatile, calm).
• Include diverse conditions. Avoid testing only during a strong bull run or a sharp crash. A date range that spans multiple market phases gives you a more realistic picture of strategy performance.
• Avoid very short ranges. A 1-week backtest might produce too few trades to draw meaningful conclusions. Aim for at least 1-3 months as a minimum.

Step 5: Configure Parameters

Depending on the strategy, you may have additional parameters to adjust. These could include:

• Stop loss percentage — How much the price must move against the position before the trade is closed at a loss.
• Take profit percentage — The profit target at which the trade is closed with a win.
• Entry threshold — Sensitivity settings that control how strict the entry conditions are.
• Indicator settings — Period lengths, moving average types, or other indicator-specific values.

Each parameter will have a default value based on the strategy’s standard configuration. For your first backtest, it is recommended to use the default values. This gives you a baseline result to compare against when you start experimenting with changes later.

Step 6: Run the Backtest

Once all parameters are configured, click the Run Backtest button to start the simulation. The suite will process the historical data, applying the strategy rules to every candle in your selected date range.

What Happens During Processing

• The system steps through the historical price data chronologically.
• At each candle, it checks whether the strategy’s entry conditions are met. If so, it opens a simulated trade.
• For each open simulated trade, it checks exit conditions (take profit, stop loss, strategy exit logic).
• When an exit condition is met, the trade is closed and the result is recorded.
• This continues until all data in the date range has been processed.

Progress Indicator

While the backtest is running, a progress indicator will show you how far through the historical data the simulation has progressed. Processing time depends on the length of the date range and the timeframe:

• Short ranges on higher timeframes (e.g., 3 months of daily candles): nearly instant.
• Long ranges on lower timeframes (e.g., 1 year of 15-minute candles): may take a few seconds to a minute.

You do not need to keep the tab in focus during processing. The results will be ready when you return.

Step 7: View Your Results

When the backtest completes, the suite transitions to the results view. This is where you see how the strategy performed across the entire date range. The results include:

• Summary metrics — Win rate, total trades, profit factor, maximum drawdown, Sharpe ratio, and more. These numbers give you a quick overview of strategy quality.
• Trade list — A table of every simulated trade, showing entry date, exit date, direction, entry price, exit price, PnL, and result. This is similar to the Signals Panel but for simulated historical trades.
• Equity curve — A line chart showing how the simulated account balance changed over time, from the first trade to the last.

Take your time reviewing the results. Do not focus solely on the headline win rate or total profit number. Look at the drawdown, study the equity curve for consistency, and scan the trade list for patterns.

*See also: Understanding Backtest Results*

Your First Backtest Checklist

Here is a quick reference for your first run:

1. Open Backtest Suite from the dashboard sidebar.
2. Select a strategy from the dropdown.
3. Choose a market (start with BTCUSDT for the most data).
4. Choose a timeframe (start with 1h for a good balance of trade volume and significance).
5. Set a date range of at least 3-6 months.
6. Leave all parameters at their default values.
7. Click Run Backtest.
8. Review the summary metrics, trade list, and equity curve.
9. Note the win rate, total trades, and max drawdown as your baseline.

Once you have your baseline, you are ready to start experimenting. Change one parameter at a time, re-run the backtest, and compare results.

*See also: Backtest Suite Overview*

*See also: Optimizing Your Strategy*