Why backtest?
Every trader thinks their strategy is brilliant — until they test it. Backtesting runs your strategy against real historical data and shows you exactly what would have happened: every entry, every exit, every win, every loss.
No opinions. No vibes. Just math.
At myRaijin, backtesting is built into the platform. You don't need to download data, write Python scripts, or set up Jupyter notebooks. Pick a strategy, pick a pair, pick a date range, and hit run.
Step 1: Choose your strategy
From the dashboard, click Backtest in the sidebar. You'll see a dropdown with all available strategies for your tier:
- DCA — classic dollar cost averaging. Long only, buys dips, sells bounces.
- Smart DCA — trend-following DCA that goes short in bear markets. Our flagship strategy.
- Ichimoku Cloud — multi-timeframe trend following with confluence scoring. For advanced traders.
- SMA Cross / Trailing / Ranging — trend, breakout, and mean-reversion strategies.
If you're new, start with DCA or Smart DCA. They're the simplest to configure and the easiest to understand.
Step 2: Configure the parameters
For DCA and Smart DCA, the key parameters are:
| Parameter | What it does | Default |
|---|---|---|
| Take Profit % | How much profit to target per deal | 3% |
| Price Deviation % | How far price must drop before first safety order | 3% |
| Safety Orders | Max additional buys per deal | 5 |
| Step Scale | How much further apart each safety order is spaced | 1.5x |
| Volume Scale | How much larger each safety order is | 1.5x |
| Stop Loss % | Maximum loss before forced exit | 15% |
The defaults are our recommended starting point — tuned from thousands of backtests across BTC, ETH, and SOL. You can tweak them later once you understand what each one does.
Step 3: Pick your pair and date range
Choose a trading pair (BTC/USDT, ETH/USDT, SOL/USDT, etc.) and a date range. A few tips:
- 90 days minimum — anything less doesn't capture enough market conditions.
- Include a downtrend — a backtest in a pure bull market will make any strategy look good. Test through the pain.
- Smart DCA needs 50+ days — the trend filter requires enough data to warm up.
Step 4: Read the results
After the backtest runs (usually 5-15 seconds), you'll see:
- Total Profit — the bottom line. Did it make money?
- Win Rate — what percentage of deals were profitable.
- Max Drawdown — the worst peak-to-trough loss. This is your pain tolerance check.
- Deal Log — every individual deal with entry, exit, safety orders used, and P&L.
- Equity Curve — a visual chart of how your balance grew (or shrank) over time.
Pro tip: Run the same pair with both DCA and Smart DCA. Compare the equity curves side by side. The difference is usually dramatic on pairs that experienced a bear phase.
Step 5: Go paper
Happy with the backtest? Deploy it as a paper trading bot. Paper mode uses real market data with simulated trades — no real money at risk. Let it run for a week or two and verify the backtest results hold up in real time.
When you're confident, switch to live. But never skip the paper step. Backtests are historical — paper trading is the bridge to reality.
Ready to run your first backtest?
Create a free account and backtest Smart DCA on BTC. It takes 2 minutes and zero dollars.
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