# Backtest Results - Analyze Strategy Performance **Last Updated**: 2026-03-17 **Version**: 1.0.0 ## How It Works ### Navigate to Backtest Results Access the Backtest Results page from the main navigation menu. This page displays playback data stored in your browser's IndexedDB, allowing you to revisit and analyze completed backtests without re-running them. ### Select a Backtest Record Choose from your list of completed backtest sessions. Each record includes the strategy name, symbol, date range, and execution timestamp so you can identify the specific run you want to analyze. ### Examine the Equity Curve Review the equity curve chart rendered via ECharts, which plots your portfolio value over time. Identify growth trends, periods of stagnation, and drawdown events to understand how your strategy performed across different market phases. ### Analyze Key Performance Metrics Study critical performance indicators including total return, annualized return, Sharpe ratio, Sortino ratio, maximum drawdown, win rate, profit factor, and average trade duration. These metrics collectively reveal both the reward potential and risk profile of your strategy. ### Review Individual Trade History Drill down into the complete trade log showing every entry and exit with timestamps, prices, position sizes, and individual profit/loss. Identify patterns in winning and losing trades to refine your strategy logic. ### Compare Against Benchmark Evaluate your strategy's performance relative to a buy-and-hold benchmark on the same instrument. This comparison reveals whether your active strategy adds alpha above passive investment in the underlying asset. ### Visualize Drawdown Periods Examine the drawdown chart to identify the depth, duration, and recovery time of each drawdown event. Understanding worst-case scenarios helps you set appropriate stop-loss levels and position sizes for strategy optimization. ### Export or Iterate on Strategy Based on your analysis, decide whether to refine the strategy by returning to the Workflow Tabler with adjusted parameters, or proceed to further out-of-sample validation. Use the insights from losing trades and drawdown analysis to guide specific improvements. > The Backtest Results page uses ECharts to render playback data from IndexedDB. This is a separate interface from the real-time Perspective modal shown during backtest execution. ## Tips & Best Practices - Prioritize risk-adjusted metrics like the Sharpe ratio and Sortino ratio over raw total return when evaluating strategy quality, as they account for the volatility of returns - A maximum drawdown exceeding 20-25% of the portfolio suggests the strategy carries significant tail risk and may need tighter stop-loss rules or reduced position sizing - Compare your strategy's win rate alongside the average win/loss ratio to get the full picture; a low win rate can still be profitable if winners are significantly larger than losers - Look for clustering of losing trades during specific market regimes to identify conditions where your strategy underperforms and consider adding regime filters - If your equity curve shows strong performance only in the first half of the backtest period, this may indicate curve-fitting; validate on the second half as an out-of-sample test ## Frequently Asked Questions ### What is the Sharpe ratio and what constitutes a good value? The Sharpe ratio measures risk-adjusted return by dividing excess return (above the risk-free rate) by the standard deviation of returns. A Sharpe ratio above 1.0 is generally considered acceptable, above 2.0 is very good, and above 3.0 is excellent. Values below 0.5 suggest the strategy does not adequately compensate for its risk. ### What is the difference between the real-time results modal and the Backtest Results page? The real-time results modal (Perspective viewer) displays data streamed via WebSocket during backtest execution. The Backtest Results page uses ECharts to render stored playback data from IndexedDB. They are two separate interfaces optimized for different use cases: live monitoring versus post-hoc analysis. ### Why does maximum drawdown matter more than total return? Maximum drawdown reveals the worst-case loss from a peak, which directly impacts whether a trader can psychologically and financially survive the strategy's bad periods. A strategy returning 100% but experiencing a 60% drawdown would require extraordinary discipline to hold through. Sustainable strategies balance return with manageable drawdowns. ### How is the profit factor calculated? Profit factor is the ratio of gross profits to gross losses. A value above 1.0 means the strategy is net profitable. Values above 1.5 indicate a solid edge, while values above 2.0 suggest a strong strategy. If the profit factor is below 1.0, the strategy loses money overall regardless of win rate. ## Important Notes > Backtesting results are derived from historical data and represent hypothetical performance. Past results are not indicative of future returns. Market conditions, liquidity, and execution quality in live trading may differ materially from simulation assumptions. --- Source: https://stratcraft.ai/help/backtest-results/