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Do you buy tops and sell bottoms? Backtesting is a key component in the creation of the most efficient trading strategy possible on the cryptocurrency market.
How Backtester worksAfter setting the proper filters in the scanner, you will be able to move on to the Backtester functions. You will need to fill in some information, based upon which an appropriate simulation will be prepared.
In the following example, the filters/alerts defined had the following assumptions:
Symbol searched:
BTCUSDFilters: Volume ratio increase:
2
Alerts:
Consolidation breakout/breakdown on 1-hour interval.You will even be able to determine settings related to your own imperfection and slippages:
-slippage
-the value of stop loss % and $
-take profit value
-the size of position/capital
-exit timeIn addition, you will be asked to set the time-frame in which you wish to conduct backtesting, even if you want to limit it to specific times of the day, you will also be able to do just that.