Test trading strategies against historical data and analyze performance metrics.
Configure a strategy and click Run Backtest to see results.
Buy when RSI drops below this number. Lower = more conservative (waiting for a deeper dip). Default 30 means buy when the stock looks significantly oversold.
Sell when RSI rises above this number. Higher = more patient (waiting for a stronger signal). Default 70 means sell when the stock looks overbought.
Buys when RSI dips below the buy threshold (oversold) and sells when it rises above the sell threshold (overbought).
Beat Buy-and-Hold
Run RSI(30/70) on AAPL over 1 year. Look at the equity curve — did the strategy beat simply buying and holding? Most active strategies struggle to beat buy-and-hold. Try different tickers to see if any work better.
Overfitting Trap
Run SMA Crossover on AAPL with short=12 and long=26. Now try short=13, long=27. Small changes shouldn’t dramatically change results. If they do, the strategy might be overfitting to noise rather than finding real patterns.
Drawdown Reality
Look at the drawdown chart after running any strategy. The max drawdown shows the worst loss from peak to trough. Could you stomach a 20% drop while waiting for recovery? This is why drawdown matters more than total return.