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Running a Backtest

This guide walks you through the process of running a backtest on Kelor.

Starting a Backtest​

1. Navigate to a Strategy​

When you click on any strategy in your dashboard, you'll be taken to the strategy detail page. This page shows:

  • Strategy description and configuration
  • Previous backtest results (if any)
  • Performance metrics

At the top right of the page, you'll find two buttons:

  • Backtest: Run a new backtest
  • Deploy: Deploy the strategy for live trading

Click the Backtest button to begin.

Backtest Configuration​

Step 1: Select Market and Timeframe​

First, specify where you want to hypothetically deploy this strategy. You need to configure:

Exchange Source​

Select the exchange where you want to simulate trading:

  • Binance: Global cryptocurrency exchange
  • Indodax: Indonesian cryptocurrency exchange
  • Huobi: Global exchange with high liquidity
  • And other supported exchanges

Trading Pair​

Choose the cryptocurrency pair to trade:

  • BTC/USDT - Bitcoin against Tether (USDT)
  • ETH/USDT - Ethereum against Tether
  • LTC/IDR - Litecoin against Indonesian Rupiah
  • And many more pairs

Note: The quote asset (second currency) determines your starting balance currency. For BTC/USDT, your balance is in USDT.

Timeframe​

Select the candle timeframe for your strategy:

  • 1m - 1 minute candles
  • 5m - 5 minute candles
  • 15m - 15 minute candles
  • 1h - 1 hour candles
  • 4h - 4 hour candles
  • 1d - 1 day candles
  • 1w - 1 week candles

Tip: Shorter timeframes mean more trades and data points, but also more noise. Longer timeframes are smoother but provide fewer trading opportunities.

Time Range​

Set the historical period for backtesting:

  • Start Date: When to begin the simulation
  • End Date: When to end the simulation

Recommendation: Test across different market conditions - include both bull markets and bear markets for realistic results.

Step 2: Strategy Configuration​

Each strategy preset has unique parameters you can customize. For example:

Williams %R Strategy​

  • Period: Number of candles to calculate the indicator (default: 14)
  • Oversold Level: When to generate buy signals (default: -80)
  • Overbought Level: When to generate sell signals (default: -20)

RSI Strategy​

  • RSI Period: Calculation period (default: 14)
  • Oversold Threshold: Buy when RSI is below this (default: 30)
  • Overbought Threshold: Sell when RSI is above this (default: 70)

Starting Tip: If you're unsure about parameters, start with the default values and tweak them later based on results.

Step 3: Trade Configuration​

Configure how the backtest simulates trading:

Initial Balance​

  • What it is: Your starting capital for the simulation
  • Currency: Always in the quote asset of your pair
    • For BTC/USDT → Balance is in USDT
    • For ETH/BTC → Balance is in BTC
    • For LTC/IDR → Balance is in IDR

Example: If testing BTC/USDT with 10,000 initial balance, you start with 10,000 USDT.

Taker Fee​

  • What it is: The fee charged per transaction
  • Where to find it: Check your exchange's fee structure
    • Different exchanges have different fees
    • VIP users may get discounts
    • Holding exchange tokens can reduce fees

Default: Usually 0.1% (0.001) for most exchanges

Slippage​

  • What it is: The difference between expected and executed price

  • Why it matters: You can't always get the exact price you want due to:

    • Market volatility
    • Order book depth
    • Liquidity constraints
    • Large order sizes

  • How it works: If you want to buy at $50,000 with 0.1% slippage:

    • Actual execution: $50,050 (0.1% higher)
    • This simulates real-world price impact

Recommended: 0.05% - 0.2% depending on market liquidity

Stop Loss​

Enable Stop Loss: ✅ Recommended

Stop loss automatically exits your position if the price moves against you by a certain percentage.

Why use it?

  • Risk Management: Limits potential losses
  • Prevents Catastrophic Losses: Protects against sudden market crashes
  • Emotional Control: Removes the need for manual decision-making during losses

Stop Loss Percentage

  • What it is: How far the price can move against you before auto-exit
  • Example:
    • You buy BTC at $50,000
    • Stop loss: 5%
    • Exit trigger: $47,500 (5% below entry)

Recommended: 3-10% depending on your risk tolerance and market volatility

Take Profit​

Enable Take Profit: Optional

Take profit automatically exits your position when you've gained a certain percentage.

Why use it?

  • Lock in Gains: Secure profits before reversals
  • Discipline: Prevents greed from holding too long
  • Systematic: Removes emotional decision-making

Take Profit Percentage

  • What it is: Target gain before auto-exit
  • Example:
    • You buy BTC at $50,000
    • Take profit: 10%
    • Exit trigger: $55,000 (10% above entry)

Recommended: 5-20% depending on your strategy and timeframe

Review and Create​

After configuring all parameters:

  1. Review Your Settings: Double-check all configurations
  2. Click "Create Backtest": This starts the simulation
  3. Redirected to Backtest Runner: Watch your strategy in action

Example Configuration​

Here's a typical backtest setup for a conservative strategy:

Market Configuration:
├─ Exchange: Binance
├─ Pair: BTC/USDT
├─ Timeframe: 1d (daily candles)
└─ Time Range: 2023-01-01 to 2024-12-31

Strategy Configuration:
├─ Strategy: RSI
├─ RSI Period: 14
├─ Oversold: 30
└─ Overbought: 70

Trade Configuration:
├─ Initial Balance: 10,000 USDT
├─ Taker Fee: 0.1%
├─ Slippage: 0.1%
├─ Stop Loss: ✅ Enabled (5%)
└─ Take Profit: ✅ Enabled (10%)

Next Steps​

Once you click "Create Backtest", you'll be taken to the Backtest Runner where you can watch your strategy execute against historical data.