A trader who aims to work in the cryptocurrency market and obtain good results needs to understand that, in order to achieve his gains, it will take a lot of study, dedication and a platform that provides the best tools for this.
In a market such as crypto-assets, the difficulty is even greater than in most traditional financial markets, because, as it is still a relatively new market, its assets undergo very large price changes in short spaces of time, making the market crypto is well known for its high volatility.
After knowing everything about Vector in: the definitive solution for crypto trading, in this new article that we have prepared, you will get to know the newest exclusive tool from VectorPro that allows you to go back in time, in addition to other tool tips for you to delve into the studies of your trading strategies, achieve better results and make better operations. Follow:
What is backtest and how to use it to validate your strategies
Before starting, it is very important that you have the necessary knowledge to carry out more precise operations, and that you dedicate many hours to research and studies.
This involves developing an operational style and also one or more strategies to ensure the best results. For this it is very important that you understand the concept and put into practice the so-called backtest. In this sense, Vector presents numerous opportunities.
You can learn more about strategies and tools by visiting nossa playlist no YouTube. There you will find the features of the main tools and stay on top of everything that this platform has to offer.
The backtest is a test in which the investor gathers historical market data and applies his strategies within this scenario to understand how his operation would behave in the future. It is important that the test has as much detail as possible, so that the result is more accurate.
After finishing the test, the trader will be able to conclude how effective his strategy is within the given context. If your backtest result is positive, the chances of success when applying this strategy in real trades increase.
However, if the result is negative, it may be better to review your strategies, improve them, redo the tests and in some cases even look for new strategies.
Backtesting with Vector
As stated earlier, the cryptocurrency market scares many investors due to its high volatility, however, this should not be a reason for amazement, but for joy.
It is in the volatility scenario that the best chances of making big profits live, just by having the necessary knowledge to be a good trader.
In the internet age we live in today, for almost all our questions and needs, we use different channels and find everything we need, right?
To trade and invest in the crypto market, everything you need is in one place, in VectorPro. And the ideal tools to perform an efficient backtest couldn’t be anywhere else.
1 – Market Replay
Crypto Market Replay is an exclusive new feature for you VectorPro subscriber. This new tool will definitely help you a lot in your studies. It offers the possibility to select specific dates, to carry out studies, validate strategies and test the effectiveness of operations in previous days in the crypto market.
In the case of a backtest for a trading strategy in the cryptocurrency market, the most important factor would be to gather, with precision of detail and information, the past price movements and the graphic variation of the asset in question.
And for that, the best tool to use is the Market Replay.
That is, with this new tool, you can, for example, request the date of seven days ago and then a new tab with the graphic of a week before the chosen asset will be opened and the chart will start repeating the movements that happened during these last seven days as if they were happening at that current and present moment.
In addition, if you want, you can still accelerate the speed with which the graph moves to perform tests faster and not miss future opportunities.
2 – Simulation Module + Chart Trading
In conjunction with the Market Replay, you can also use the Chart Trading in your simulation account. With it you can carry out buy and sell operations within the replay chart.
This will help you to test your strategies as accurately as possible, as you will be able to know what the real result would be if you had opened a trade like that.
With Chart Trading you will be able to perform several simulated operations simultaneously on the chart on which you are performing your tests.
You will be able to place stop orders, market orders, buy and sell orders, in addition to being able to observe the results of the operation in real time.
3 – Performance Report
To make your study even more complete, you can use another resource present in Vector, the Performance Report tool. In it you will have access to a review of your trades, that is, you will be able to follow the information related to the evaluation of your trader.
Right away, you will be able to check a summary of your performance with the total net balance achieved, which is the result between your gross profit and gross loss of all your operations in aggregate. If you prefer, you also have the option to view the information for each trade made separately.
You can also access the “Graph” tab within the tool and follow several graphs referring to your operations, such as the equity graph; operations; efficiency and order. There are many customization options to ensure you get the most out of the tool.
So, did you like the tips? As you can see, with Vector Pro you will always be well equipped with the best tools and resources to perform a quality backtest.
enjoy and take a free trial from Vector to access the next level in crypto asset trading. And don’t forget: the more you study and validate your strategies, the better your results will be.
*Currently, the quotes used in Replay are made available by the exchange Binance.