BETTER PERFORMANCE THANKS BACKTEST.
Conducting a backtest enables a precise analysis of the performance of a trading strategy. The following diagram shows an excerpt of the performance report in Tradesignal. In addition to numerous key figures like Drawdown and Return on Account, you will also receive a list of all trades and special tools for improving stops and price targets.
The right part of the figure shows the profit or loss in relation to the drawdown for each individual trade (drawdown = maximum loss during the holding period of this trade). If a rule is used which limits the drawdown to 15,000 USD, you may lose 3-4 winning trades (green triangles), but you also avoid numerous losing trades (red triangles). In addition, one sees very quickly possible “outlier trades”; like the four trades closed between $ 16,000 to $ 20,000 (green triangles).