Docs StrategyDB FAQ

How Does Backtesting Work?

June 16, 20261 min read

You define a strategy's rules (entry, exit, position sizing, timeframe), and SDB walks through historical data period by period, executing the strategy mechanically. Every trade is logged. At the end, you get a full performance report — total return, drawdown, win rate, trade count, and more. The process is deterministic: same rules and data always produce the same result.

MG
Matthew J. Goss, Jr.
Retired COMEX/NYMEX floor trader, Goldman Sachs and FlexTrade Systems alumnus, multi-instrumentalist, published author, and independent mathematics researcher. Founder of Quantiterate.