🔍 What is Backtesting?
Backtesting is the process of testing a trading strategy on historical market data to see how it would have performed in the past.
In iYurek, you can backtest your strategy on any symbol (like INTC or BTCUSD), across a selected time period. This gives you clarity on whether the strategy is worth using before you go live.
📊 What You See on the Backtest Screen
When you run a backtest, you’ll see:
- Equity Curve Graph
A line graph showing how your profits and losses moved over time. - Key Metrics (Below the Graph)
These numbers summarize how well (or poorly) the strategy performed.
Here’s what each metric means:
🧾 Backtest Metrics Explained
| Metric | Meaning |
|---|---|
| Total Number of Trades | How many trades the strategy made during the backtest. |
| Number of Wins | How many trades ended in profit. |
| Number of Losses | How many trades ended in loss. |
| Winning Streak | The highest number of wins in a row. |
| Losing Streak | The highest number of losses in a row. (Note: This is misspelled as “Loosing Streak” and will be corrected.) |
| Max Gain | The biggest profit from a single trade. |
| Max Loss | 🔴 Largest single trade loss. Helps you spot your worst-case scenario from one trade. |
| Average Gain / Winning Trade | On average, how much money you earned when the trade was a win. |
| Average Loss / Losing Trade | On average, how much money you lost when the trade went bad. |
| Max Drawdown (USD) | 📉 The worst drop from your peak portfolio balance to the lowest point. Reflects your deepest portfolio dip. |
| Max Drawdown (%) | The same drawdown as above, but shown as a percentage of your peak balance. Useful to compare across assets. |
📌 Max Loss vs Max Drawdown — What's the Difference?
| Max Loss | Max Drawdown |
|---|---|
| Biggest loss from a single trade | Biggest drop in total account balance, possibly over multiple trades |
| Example: You lost $6,000 in one trade | Your balance went from $10,000 to $1,000 over 4 trades = $9,000 drawdown |
Tip: Max Drawdown gives a broader view of portfolio risk, while Max Loss shows individual trade risk.
🧠 Why These Metrics Matter
- Risk Management: Knowing your worst-case loss helps you decide position sizing.
- Consistency: Streaks tell you if the strategy is volatile or stable.
- Profitability Clarity: You’ll see if average wins are outweighing losses.
🧪 Learn by Doing
Want to explore more strategies and see how they perform?
🟢 Go to the Strategy tab
🟢 Select any asset (stocks, crypto, or forex)
🟢 Try different setups and analyze your backtest screen!