Backtesting & results
Reading your results
What the equity curve and the headline metrics mean — and how to read them together rather than chasing one number.
Updated 2026-06-29·Rev. 2026.06
A backtest gives you an equity curve and a set of metrics. Read them together — no single number tells the whole story.
Equity curve
Account value over time. Look at its shape, not just the endpoint: a smooth rise survives real trading better than a jagged one that happens to end high. A curve that's flat then spikes is usually one lucky trade, not an edge.
The shaded region is drawdown — every stretch where the account sits below its prior peak. Its deepest point is your max drawdown: the worst peak-to-trough loss you'd have endured to earn this result.
The headline metrics
| Metric | What it tells you |
|---|---|
| Net PnL | Total profit/loss over the run. |
| Max drawdown | The largest peak-to-trough drop — the worst pain you'd have sat through. |
| Sharpe ratio | Return per unit of volatility. Higher means smoother returns for the same gain. |
| Win rate | Share of trades that closed green. High win rate with tiny wins and huge losses is a trap. |
| Trade count | How many trades produced the result. A handful of trades isn't statistically meaningful. |
Read them as a set
A high return with a brutal drawdown may be untradeable. A modest return with a shallow drawdown and enough trades is often the better strategy. Always weigh return against the drawdown you'd endure.
Replay it candle-by-candle
For a deeper look, step through the run in the simulation playback — watch where entries and exits fired against the chart. It's the fastest way to see why a trade happened and whether the logic matched your intent.
See the glossary for precise definitions of each metric.