# Crypto Backtesting

> Crypto backtesting tests trading rules on historical crypto candles before real capital is at risk.

Canonical URL: https://backtest.click/learn/crypto-backtesting/
App URL: https://backtest.click/
Last updated: 2026-07-08

## Definition

Crypto backtesting simulates entries, exits, fees, slippage, stop loss, and take profit on historical markets such as BTC/USDT and ETH/USDT. It helps traders evaluate whether a strategy has enough evidence before monitoring or trading it.

## Example Setup

A practical crypto test could use BTC/USDT, 1H candles, 6 months, a pullback rule near EMA 9 and EMA 21, long-only direction, 2% position size, 0.10% commission, 5 bps slippage, 2% stop loss, and 4% take profit.

## What To Inspect

Review net profit, win rate, drawdown, profit factor, trade count, average win, average loss, and trade clusters. If losses cluster in sideways markets, consider a trend filter or avoid low-volatility periods.

## Risk Note

Crypto backtesting is historical simulation. It does not guarantee future performance, and Backtest does not place real-money trades.