What is backtest?Backtest
Simulating rule-based trading on historical data to see how a strategy would have done.
Learn “backtest” in an animated lesson
- Quant BasicsBuilding Strategies from Rule Blocks
Turn "gut feel" into rules: buy when one condition is true, sell when another is. Snap a few blocks together and let historical prices give you the answer.
- Indicators in Practice & BacktestingBacktesting a Moving Average Strategy
Test your rules against historical data: return, win rate and maximum drawdown, and you can't skip any of them.
- Trend IndicatorsMA Alignment: Bullish, Bearish and Tangled
Moving averages stacked from shortest at the top to longest at the bottom is a bullish alignment, the reverse is bearish, and when they're twisted together it's a tangle.
- Trend IndicatorsMoving Average Crossovers: Golden and Death Crosses
A short-term average crossing above a long-term one is a golden cross; crossing below is a death cross. The most classic trend signal there is.
Related terms
See how “backtest” works for yourself with an animation you can drag and play.
Go to “Building Strategies from Rule Blocks”