🔬 Backtesting Lab - User Guide

Version: 1.0
Last Updated: 10 December 2025
Status: ✅ Complete
Audience: Traders, Strategy Designers, Platform Users

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📑 Table of Contents

1. Overview
2. How to Access
3. Key Features
4. Interface Tour
5. Running Your First Backtest
6. Configuration Controls
7. Understanding Results
8. Performance Metrics
9. Charts & Visualizations
10. Saving & Exporting
11. Templates
12. Tips & Best Practices
13. Common Issues & Solutions
14. FAQ
15. Related Guides

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🎯 Overview

What is Backtesting Lab?

The Backtesting Lab is where you test your trading strategies against real historical market data. It answers the crucial question: "Would this strategy have been profitable in the past?"

Think of it as a time machine for trading — you replay historical market conditions and see exactly how your strategy would have performed.

What Can You Do?

Why Backtest?

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📍 How to Access

🏠 Dashboard → 📊 Platform → 🔬 Backtesting Lab

Step-by-Step Navigation

1. Log in to your Flytradr account
2. Click on Platform in the main navigation
3. Select Backtesting Lab from the sidebar menu

📸 [Screenshot: Navigation path highlighted showing Dashboard → Platform → Backtesting Lab]

Quick Access Methods

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✨ Key Features

🧱 Core Capabilities

🛡️ Realistic Simulation

The Backtesting Lab models real trading conditions:

• ✅ Commission fees (per-trade costs)
• ✅ Slippage (price impact)
• ✅ Order execution (market/limit)
• ✅ Position sizing (based on capital)

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🖥️ Interface Tour

Layout Overview

Screenshot: [Diagram placeholder #1 - Add relevant screenshot here]

Sidebar Sections

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🚀 Running Your First Backtest

Let's run a complete backtest step by step!

Step 1: Select Your Strategy

1. Click the Strategy Selection section in the sidebar
2. Click Select Strategy or the dropdown
3. Choose a strategy from your saved library
4. The strategy details will appear below

📸 [Screenshot: Strategy selection dropdown with list of saved strategies]

💡 Tip: No strategies? Go to Strategy Builder first!

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Step 2: Configure Market Data

1. Click the Market Selection section
2. Configure:

📸 [Screenshot: Market selection panel with provider, symbol, and timeframe dropdowns]

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Step 3: Set Test Parameters

1. Click the Test Settings section
2. Configure your backtest parameters:

📸 [Screenshot: Test settings panel with date pickers and capital input]

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Step 4: Configure Execution Settings

1. Click the Execution Settings section
2. Set realistic trading costs:

📸 [Screenshot: Execution settings panel with commission and slippage inputs]

💡 Why fees matter: A strategy with 55% win rate might actually lose money after fees!

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Step 5: Run the Backtest

1. Review your configuration
2. Click the ▶️ Start button
3. Watch the progress bar fill
4. View results as they stream in!

📸 [Screenshot: Backtest running with progress bar at 50%]

Status Indicators

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⚙️ Configuration Controls

Strategy Settings Panel

Market Selection Panel

📊 Provider Comparison:

Test Settings Panel

Session Templates

Execution Settings Panel

💡 Realistic Fee Examples:

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📊 Understanding Results

Performance Summary Panel

After a backtest completes, you'll see a summary grid:

Screenshot: [Diagram placeholder #2 - Add relevant screenshot here]

Color Coding

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📈 Performance Metrics

Core Metrics Explained

Risk Metrics

Trade Statistics

Metric Benchmarks

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📉 Charts & Visualizations

Equity Curve

The Equity Curve shows your portfolio value over time:

Portfolio Value ($)
     ^
12000│                              ___/
     │                         ___/
11000│                    ___/
     │               ___/
10000│___________/
     │
 9500│        ↓ Drawdown
     └──────────────────────────────────────> Time
         Jan    Feb    Mar    Apr    May

📸 [Screenshot: Interactive equity curve with hover tooltips]

What to look for:

• 📈 Upward trend = Strategy is profitable overall
• 📉 Sharp drops = Drawdown periods (risk!)
• 📊 Smooth curve = Consistent performance (ideal)
• 🎢 Choppy curve = High volatility (concerning)

Drawdown Chart

Shows underwater equity periods:

Drawdown (%)
     0%│─────────────────────────────────────
     │          \    /
   -5%│           \/\/
     │              \
  -10%│               \____/
     │
  -15%│                          Max DD: -12%
     └──────────────────────────────────────> Time

📸 [Screenshot: Drawdown chart showing peak-to-trough declines]

Win/Loss Distribution

Histogram of trade outcomes:

    Frequency
        ^
     12 │  ▓▓
     10 │  ▓▓
      8 │  ▓▓  ▓▓
      6 │  ▓▓  ▓▓  ▓▓
      4 │  ▓▓  ▓▓  ▓▓  ▓▓
      2 │  ▓▓  ▓▓  ▓▓  ▓▓  ▓▓
        └─────────────────────> P&L %
         -5% -2%  0%  +2% +5%

📸 [Screenshot: Win/loss distribution histogram]

Monthly Returns Heatmap

       Jan  Feb  Mar  Apr  May  Jun
2024   +2%  -1%  +4%  +3%  -2%  +5%
       🟢   🔴   🟢   🟢   🔴   🟢

📸 [Screenshot: Monthly returns grid with color coding]

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💾 Saving & Exporting

Save Results to Library

1. After backtest completes, click 💾 Save Results
2. Enter a descriptive label (optional)
3. Add notes about this backtest (optional)
4. Click Save

📸 [Screenshot: Save dialog with label and notes fields]

Saved backtests appear in: Dashboard → Saved Results

Export Trades as CSV

1. Click 📤 Export button
2. Select Export Trades (CSV)
3. File downloads with all trade details

CSV Columns:

Export Full Results (JSON)

1. Click 📤 Export button
2. Select Export Full Results (JSON)
3. Complete backtest data downloads

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📋 Templates

What Are Templates?

Templates save your configuration settings (not results) for quick reuse:

• Market selection (provider, symbol, timeframe)
• Test settings (capital, dates, fees)
• Execution settings (commission, slippage)

Saving a Template

1. Configure your backtest settings
2. Click the 📋 Templates section
3. Click Save as Template
4. Enter a template name
5. Click Save

📸 [Screenshot: Template save dialog]

Loading a Template

1. Click the 📋 Templates section
2. Browse your saved templates
3. Click Load on the template you want
4. All settings are restored!

📸 [Screenshot: Template list with load/delete buttons]

Template Ideas

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💡 Tips & Best Practices

🎯 Strategy Testing Tips

📊 Result Interpretation Tips

⚡ Productivity Tips

⚠️ Common Mistakes to Avoid

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⚠️ Common Issues & Solutions

Issue: "No strategy selected"

Symptoms: Start button disabled, error message shown

Solution:

1. Click the Strategy Selection panel
2. Choose a saved strategy from the dropdown
3. If no strategies appear, create one in Strategy Builder first

📸 [Screenshot: Strategy selection panel with dropdown empty]

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Issue: "Invalid date range"

Symptoms: Error about dates, backtest won't start

Solution:

1. Ensure Start Date is BEFORE End Date
2. Check that dates aren't in the future
3. Verify data exists for the selected period

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Issue: "Backtest failed"

Symptoms: Red error status, no results

Possible Causes & Solutions:

📸 [Screenshot: Error status with message details]

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Issue: Results show 0 trades

Symptoms: Backtest completes but no trades

Possible Causes:

1. Signal never triggered: Check strategy logic
2. Wrong timeframe: Signal requires different interval
3. Wrong market: Strategy designed for different symbol
4. Date range too short: Not enough data for signals

Solution: Review strategy signals in Strategy Builder

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Issue: Very different results than expected

Symptoms: Results don't match mental model

Checklist:

• ✅ Correct strategy selected?
• ✅ Correct symbol/timeframe?
• ✅ Fees configured correctly?
• ✅ Date range as expected?
• ✅ Initial capital correct?

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❓ FAQ

General Questions

Q: How far back can I backtest?

🅰️ Depends on the data provider:

• Binance: Up to 3+ years for major pairs
• Yahoo Finance: Up to 10+ years for popular stocks
• Older data may have gaps

Q: How long does a backtest take?

🅰️ Depends on date range and timeframe:

• 1 month, 1h: ~5-10 seconds
• 1 year, 1h: ~30-60 seconds
• 3 years, 1d: ~10-20 seconds

Q: Can I backtest multiple strategies at once?

🅰️ Currently one at a time. Batch backtesting is planned for a future release.

Technical Questions

Q: What does "Sharpe Ratio" mean?

🅰️ Risk-adjusted return. It measures how much return you get per unit of risk. A Sharpe > 1.0 is considered good.

Q: Why is my win rate high but I'm losing money?

🅰️ Your average loss is larger than your average win. A 60% win rate with $100 wins and $200 losses = net loss.

Q: Does slippage apply to both entry AND exit?

🅰️ Yes, slippage is applied to every order execution in the simulation.

Troubleshooting Questions

Q: The backtest is stuck at 0%?

🅰️ The system might be fetching data. Wait 30 seconds. If still stuck, click Stop and retry.

Q: Can I pause and resume a backtest?

🅰️ Not currently. Backtests run to completion or must be stopped/restarted.

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🔗 Related Guides

Before Backtesting

After Backtesting

Supporting Documentation

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📝 Glossary

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📞 Need Help?

• 💬 In-App Help: Press Ctrl+? or click the Help icon
• 📧 Email Support: support@flytradr.com
• 📖 Knowledge Base: docs.flytradr.com
• 💬 Community Discord: discord.gg/flytradr

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Document End
Next Review: January 2026
Owner: Flytradr Team