Signal Backtest

Signal backtest: test your list before trading

The signal backtest applies your list of entries to historical data and shows how it would have performed. Instead of relying on intuition, you see accuracy, Gale usage, cycles and performance by asset before risking real capital.

When to use it

The backtest is the step that separates an idea from a tested strategy. Use it whenever you receive, build or adjust a signal list, before putting money on it.

In practice, the backtest changes the question from whether a list looks good to whether it actually held up. Run it on a long period, with the Gale setting you plan to use, and read the per-asset results. The goal is not a perfect curve but an honest picture: where the list works, where it fails and how much it costs when it fails, so you can decide with numbers.

How to use

Paste or import your signal list with time, asset and direction.
Set the test rules, such as the number of Gale levels.
Run the backtest and compare the overall result with each asset.
Drop weak assets and times, then test the refined list again.

Best practices

Use a period long enough to include different market conditions.
Test with the same Gale setting you actually plan to use.
Compare different lists with the same test rules.
Drop assets and times that concentrate losses and test again.

Common mistakes

Tweaking the list until the backtest looks perfect, which creates a list that only works on the past.
Ignoring the cost of Gale levels in the result.
Testing a short period and generalizing.

Frequently asked questions

Does a backtest guarantee the same result in the future?: No. It shows what happened in the past, which helps compare lists and discard the worst ones, but it is not a promise of future results.
Why look at performance by asset?: A list can have a good overall average while hiding assets that lose often. The per-asset view helps you cut what drags the result down.