Auto Backtester

Overview

The Auto Backtester, a unique feature exclusive to Lune Trading, takes the labor-intensive process of backtesting and simplifies it into an automated, user-friendly experience. It has the capability to sift through over 100 distinct strategy combinations and settings, enabling traders to swiftly identify potentially profitable strategies with the mere click of a button.

Settings

Auto Backtester (Dropdown Options)	Description
Size	Customize your Dashboards size.
Location	Customize your Dashboards location.

Sort By Best (Dropdown Options)	Description
Win Rate	Filter the Win Rate results from Highest to Lowest.
Profits	Filter the Net Profit results from Highest to Lowest.
Profit Factor	Filter the Profit Factor results from Highest to Lowest.

Sensitivity Range (User Input)	Description
Minimum	The minimum value that can be backtested.
Maximum	The maximum value that can be backtested.
Step	The incremental change per backtest.

Velocity Range (User Input)	Description
Minimum	The minimum value that can be backtested.
Maximum	The maximum value that can be backtested.
Step	The incremental change per backtest.

Risk Amount % Range (User Input)	Description
Minimum	The minimum value that can be backtested.
Maximum	The maximum value that can be backtested.
Step	The incremental change per backtest.

Risk Ratio Range (User Input)	Description
Minimum	The minimum value that can be backtested.
Maximum	The maximum value that can be backtested.
Step	The incremental change per backtest.

Reward Ratio Range (User Input)	Description
Minimum	The minimum value that can be backtested.
Maximum	The maximum value that can be backtested.
Step	The incremental change per backtest.

Settings (User Input)	Description
Maximum Lookback	The maximum amount of candles that can be backtested.
Backtesting Limiter	Limit how many backtests can take place at once. If you are experiencing timeouts you should lower this value.

How To Use

1. Launch the Backtest:

   • After configuring your desired parameters, initiate the backtest. The system will start analyzing past data, considering the strategies and settings you've chosen.

2. Result Analysis:

   • Upon completion, the Auto Backtester will present a detailed report comprising various performance metrics for each strategy combination.

   • Explore this list to identify strategies that resonate with your trading preferences. Look beyond just profitability - consider metrics like drawdown, win rate, and profit factor.

3. Strategy Implementation:

   • Once a strategy catches your eye, save its specifics. Begin testing it, either on a demo account or with limited capital, to gauge its real-time performance.

4. Refinement:

   • If the results aren't up to your expectations, there are several avenues for enhancement:

     • Generate New Results: Increase Maximum Lookback setting by 1. This will provide you with a new set of results. You can also refresh the page or the app to generate new results.

     • Trade Management: Adjust settings like stop loss, take profit, and other trade management parameters to fine-tune the strategy.

     • Time Filters: Modify the specific times or days the strategy operates to avoid unfavorable market conditions.

     • Trade Conditions Filters: Integrate additional conditions or constraints to the strategy to ensure it only trades under optimal scenarios.

5. Iterative Approach:

   • The beauty of the Auto Backtester is the ease with which you can run multiple tests. Regularly tweak and retest to continually refine and improve your strategy.

6. Proceed with Caution:

   • Even with a tool as powerful as the Auto Backtester, always remember that past performance doesn't guarantee future results. Use backtested strategies as a foundational guide but remain vigilant and flexible in real-time market conditions.

By combining the innovative Auto Backtester with a diligent and methodical approach, traders can enhance their chances of uncovering strategies that align with their trading goals and risk tolerance.