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Backtesting

Backtesting simulates your strategy against historical data so you can evaluate performance before deploying capital.

Performance tab with equity curve and metrics
The Performance tab shows backtest results and live metrics.

Running a backtest

Section titled “Running a backtest”
1

Open your strategy in the editor.

2

Go to the Performance tab.

3

Select a date range: 1M, 3M, 6M, YTD, 1Y, or MAX.

4

Review the equity curve, metrics, and benchmark comparison (for example vs SPY).

Key metrics

Section titled “Key metrics”
Metric What it tells you
CAGR Annualized growth rate over the period
Sharpe Return per unit of risk (higher is better)
Max DD Largest peak-to-trough decline
Win Rate Share of profitable trades
Total Return Overall percentage gain or loss

See Metrics Glossary for full definitions.

Equity curve

Section titled “Equity curve”

The chart plots strategy equity over time. A benchmark line (such as SPY) helps you see if the strategy outperformed the market.

Hover over the chart to see exact values at any date.

Branch history

Section titled “Branch history”

When you change strategy logic, Quantly tracks branch history - versions of your tree over time. You can compare how edits affected performance.

Limitations

Section titled “Limitations”

Backtesting is a simulation. Keep in mind:

  • Slippage - real fills may differ from historical prices
  • Survivorship bias - delisted assets may not appear in history
  • Overfitting - tuning to past data may not work forward

Past performance does not guarantee future results.

Next steps

Section titled “Next steps”