What are the key factors to consider when backtesting crypto trading algos?

1 answers

• Dec 16, 2021 · 3 years ago
  When backtesting crypto trading algorithms, one important factor to consider is the quality and reliability of the historical data. It's crucial to use accurate and up-to-date data to ensure that the backtesting results are realistic and representative of the actual market conditions. Additionally, it's important to consider the impact of transaction costs and slippage on the performance of the algorithm. These costs can significantly affect the profitability of the strategy and should be taken into account during the backtesting process. Finally, it's essential to analyze the performance of the algorithm under different market conditions and evaluate its robustness and stability. This can help identify any weaknesses or limitations of the algorithm and make necessary adjustments to improve its performance.
  818409