Understanding backtests

Know the difference between strategy research, the demo and live trading results.

A backtest evaluates an idea against historical data. It helps assess how an approach behaved under those conditions, but does not guarantee future returns.

• Demo: a repeating product simulation using public market prices. Its account balance, positions and decisions are illustrative.
• Research: results depend on the tested strategy, period, data coverage and assumed trading costs.
• Live account: actual venue positions, fills, fees and funding determine your trading result.

The Backtest page lets you explore estimated equity across timeframes using reviewed historical strategy reports. Calculations run in your browser; they do not place orders or run a new historical replay. Results depend on the research period, scope and modeled costs. A strategy without a verified result for its current version shows as unavailable. See the strategy overview to learn what each strategy focuses on.