Backtesting
Backtesting runs a trading strategy against historical data to see how it would have performed, providing evidence about its behaviour before risking real money.
Backtesting is the process of applying a trading strategy to historical market data to see how it would have performed in the past. Instead of guessing whether a set of rules is any good, you run those exact rules across years of real price history and measure the results: returns, drawdowns, win rate, and more.
A credible backtest is honest about its assumptions. It accounts for trading costs, does not quietly change the rules to flatter the outcome, and uses a long enough period to include both good and bad conditions. A backtest is not a promise about the future, because markets change, but it is the difference between a strategy with evidence behind it and one based on a story.
Crypto Wealth publishes the assumptions behind its Bitcoin backtest, including the period tested and the way drawdown and profit factor are measured, because a result is only meaningful if you can see how it was produced. Reproducibility is what separates evidence from marketing.
