What are the key metrics to consider when evaluating the results of a cryptocurrency trading backtest?

1 answers

• Mário MendesFeb 08, 2025 · 6 months ago
  When evaluating the results of a cryptocurrency trading backtest, it's useful to compare the performance of the strategy against a benchmark. This could be a market index or an alternative trading strategy. By comparing the returns and risk metrics of the backtested strategy with the benchmark, traders can assess whether the strategy outperforms or underperforms the market. Additionally, it's important to consider the transaction costs and slippage associated with the trading strategy. These costs can significantly impact the overall profitability of the strategy and should be taken into account when evaluating the backtest results. By considering these key metrics and comparing the performance against a benchmark, traders can gain a better understanding of the effectiveness and competitiveness of their trading strategies.
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