When it comes to choosing your crypto bot’s strategy, backtesting is really important. Why is that you might ask?
Because if you don’t primarily test your assumptions about your strategy, how will you know if it will stand the test of time? What will happen in an uptrend? What about a downtrend? What if the market stays flat?
While a thorough backtest of your strategy is important, it is absolutely not a guarantee of future results, so keep that mind and don’t be too cocky!
As you can see the interface has everything that is needed, nothing more.
You will be able to modify some of the key variables in your backtest such as:
- The crypto exchange
- The pair of coins traded by the bot
- The time interval
- The starting time of the bot for the backtest
- The backtest finish date
You should note that the start / stop time of your backtest will be determined by the interval at which you set the trading.
If you select a 15 seconds trading interval, you will not be able to backtest the bot over a long period because the bot will most likely perform many actions.
On the other hand, if the interval is 4 hour the backtest can be run for much longer so keep that in mind when checking how a bot would have performed in the past.
Cryptohopper provides relevant informations regarding your backtest.
However, we can’t say that the backtesting tool is fantastic. This is not only a Cryptohopper miss, 3Commas is equal in that area, so are pretty much all crypto trading bot at the moment.
If you are expecting a detailed breakdown like you have on Tradingview for example, you are going to be disappointed.
You won’t be able to factor in exchanges fees; account for possible slippage or have a deep breakdown of your trades and will have to do this work manually. Daunting if you want to thoroughly test your assumptions.
Nevertheless, it will provide a great basis for beginner and intermediate traders that want to go further than the guess work while trying to find a profitable strategy.
With all the development the team has been doing we have no doubt this feature will get better in the future.