The Backtesting Tool
Use data from the past to learn possible market scenarios in the future.
The backtesting tool is one of our most important tools, as it enables you to find your ultimate Hopper settings for maximum profit.
In this tutorial we will look at how it works!
Dashboard
This is the dashboard of your Backtesting tool.
Finding a configuration
The first step is to select a currency and candle size. By default, the candle size is set to 30 minutes.
The tool will hence trace your strategy back in time in blocks of 30 minutes. Therefore, real trades could differ as your hopper checks your indicators more often.
Next, choose your desired percentage profit. In this example, we’ll go with 2%.
Click "Find config".
Results
When interpreting the result of the backtest, there are a number of things to look out for.
For a start, your "Max Profit" figure should display a positive value.
Yet, seeing a high profit is not the sole purpose of the tool.
You will want the "Successful sells" to greatly outweigh "Sells with loss".
As you can see, we did fairly well in this example. But we can always improve, so let's adjust the settings!
Config tester
In the Config tester, you’re able to tweak and test your Hopper settings.
Here it is interesting to play with the strategy settings.
Period
Another option is to adjust the period the Backtester should look at. Depending on market conditions like volatility, you can for instance only select more or less volatile periods.
This should increase the accuracy of the backtesting tool.
You can select the period in both the "config finder" and the "config tester".
Backtest History
Can you not remember the settings of that successful configuration you found earlier? It should be in your backtest history!
Best Configurations
In the best configurations tab, you see the best-tested configurations currently found.
Do not copy these blindly! The backtesting tool is a great way to learn, but looking at the past does not help you predict the future.
Watch closely for the important factors you’ve learned, before applying a config.
Important Lesson
As stated in your "config finder", the most important lesson is that past performance does not guarantee results. Imitating other people's setting is not an automatic formula for success, not least because your portfolio will not be identical.
The Back-tester is a powerful tool, so we advise you to tweak your settings to optimize results. Use it wisely and share configurations on the forum with your fellow Hoppers.
If you want more information about this subject, make sure to check the Cryptohopper Academy video.
