Backtests by Veles —  we Test Strategies without Risk

Backtesting is a way to test a trading strategy using historical data. Imagine: you have an idea to buy Bitcoin when its price drops 5% in a day and sell it three days later. 

But how do you know if it works without losing real money? Backtesting provides the answer.

With their help you can:

• Assess the profitability of the strategy.
• Identify risks such as major drawdowns.
• Adjust the parameters, for example, change the price drop threshold from 5% to 7%.

Backtests are like a flight simulator for a trader: these don’t guarantee success in the real market, but they help avoid disasters. Platforms like Veles Finance make this process accessible even to beginners by offering convenient tools for analyzing ideas.

How to conduct backtests

Creating a backtest is a sequential process:

• Define a strategy. For example, use indicators like moving averages or RSI.
• Select data. Decide which timeframe and assets to test — e.g. Ethereum daily charts.
• Adjust the settings. Specify the position size, entry and exit points.
• Run the simulation. The program will apply your strategy to historical data.
• Analyze the results. Study the profitability, maximum drawdown and trading frequency.

For example 

You are testing a strategy to buy Solana at the crossover of the 20-day and 50-day moving averages. The backtest will show how many trades have been profitable over the past two years and what risks have arisen.

Modern platforms like Veles Finance automate this process, allowing you to focus on analysis rather than manual adjustments — that’s why we need it. 

Veles Finance Backtests

Veles Finance —  is a platform that simplifies the testing of crypto strategies. Its key advantages are:

• Access to real data. Highly accurate quotes for hundreds of crypto assets.
• Flexibility. Support for both simple and complex algorithms.
• Preview. Profitability and drawdown charts help you quickly assess performance.
• Optimization. The system suggests the best parameters for your strategy.

Veles is especially useful for traders who want to test ideas without deep programming knowledge. The platform is intuitive and suitable for both beginners and professionals.

Do backtests work?

Critics of backtesting argue that markets are too unpredictable and that past data does not reflect the future. However, backtesting helps identify consistent patterns. Let’s look at another one example.

Case study: TWT’s «Edison» strategy

‘Edison’ strategy was tested on the TWT token. Backtest for a year showed 80%+ yield with a maximum drawdown of only 27%. The average transaction time was less than 24 hours, which minimized market risks. As we can see, backtesting can identify low-risk, high-performance strategies, although it does not guarantee identical results in the future.

The choice of a platform for cryptocurrency backtesting depends on your experience and requirements:

• For beginners — simple tools that do not require deep knowledge will do.
• For professionals — more sophisticated solutions are needed that can support complex algorithms.

Why choose Veles? 

Backtesting is not a crystal ball that predicts the market, but it is a powerful tool for testing ideas. It helps traders avoid mistakes and optimize strategies before real investments. Veles Finance makes this process convenient and efficient, offering deep analytics and an intuitive interface. 

So, why Veles? There are possibilities to create algorithms without code and Test on hundreds of coins, from BTC to altcoins. Detailed analytics help consider fees, slippage and other factors — all you need to start the first trading bot and get a sign-up bonus.  

Want to test your next trading idea? Start with a backtest — this is your first step to confident trading.