Docs StrategyDB FAQ

What Is StrategyDB?

June 16, 20262 min read

What backtesting is

Backtesting is the process of applying a trading strategy to historical data to see how it would have performed. You define the rules — when to enter, when to exit, how much to risk — and the system walks through the historical record, executing the strategy mechanically as if you had followed those rules in real time.

The result is a performance report: total return, maximum drawdown, win rate, Sharpe ratio, and a complete trade log showing every entry and exit. This lets you evaluate a strategy's characteristics before risking real capital.

What SDB does

StrategyDB provides the infrastructure for defining, running, and analyzing backtests. You specify:

  • Entry rules — the conditions that trigger a new position
  • Exit rules — the conditions that close an existing position (profit targets, stop losses, time-based exits, or signal-based exits)
  • Position sizing — how much capital to allocate per trade
  • Timeframe — the data resolution and historical period to test against

SDB executes the strategy against the specified historical data and produces a detailed performance report.

What SDB is not

SDB is not a trading bot. It does not execute live trades. It does not connect to exchanges or brokers. It is a research and analysis tool — it tells you how a strategy would have performed, which helps you decide whether it's worth deploying.

SDB also does not guarantee future performance. A strategy that performed well historically may not perform well in the future. Backtesting is one input into strategy evaluation, not the final answer.

Free vs Pro

Free users can run basic backtests with limited parameter sets and historical depth. Pro users get full parameter flexibility, extended historical data, advanced metrics, and the ability to save and compare multiple strategy configurations.

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.