How do I understand the Backtest Summary?
The Backtest Summary gives a detailed view of how your automation performed during the selected backtest period. It helps you review returns, trade performance, risk, and capital movement before deciding whether to refine or run the strategy.
Use this section to understand both the profitability and risk profile of the automation.
Summary metrics
| Metric | Meaning |
|---|---|
| Initial Capital | Starting capital used for the backtest. |
| Final Capital | Portfolio value at the end of the backtest. |
| Total Trades | Total number of completed trades during the backtest period. |
| Return % | Total return as percentage of initial capital. |
| Annualised Return | Return calculated on a yearly basis based on the backtest result. |
| Profitability % | Percentage of completed trades that ended in profit. |
| Profitable Trades | Number of completed trades that ended in profit. |
| Losing Trades | Number of completed trades that ended in loss. |
| Avg Profit | Average profit earned on profitable trades. |
| Avg Loss | Average loss incurred on losing trades. |
| Profit Factor | Compares total profit with total loss to show how efficiently the strategy generated returns. |
| Sharpe Ratio | Measures risk-adjusted return by comparing returns with overall volatility. |
| Sortino Ratio | Measures risk-adjusted return by considering downside volatility. |
| Volatility | Shows how much the strategy returns fluctuated during the backtest period. |
| Max Drawdown | Largest fall from a peak value during the backtest period. |
| Max Profit | Highest cumulative profit reached during the backtest, excluding the initial capital. |
| Max Loss | Highest cumulative loss reached during the backtest, excluding the initial capital. |
| Largest Profit | Highest profit earned from a single completed trade. |
| Alpha | Shows how the strategy performed against the benchmark, NIFTY 50. |
| Beta | Shows how closely the strategy’s returns moved in relation to the benchmark. |
| Calmar Ratio | Compares annualised return with the maximum drawdown. |
| Avg Bars Held | Average number of hourly candles each trade remained open. |
| Trading Exposure % | Percentage of the backtest period during which the strategy had an open position. |
A higher return alone does not always mean a better strategy. Review drawdown, losses, exposure, and risk-adjusted ratios along with profitability.
What if…
| Scenario | Solution |
|---|---|
| Gross Return is positive but Final Capital is lower than expected | Charges, losses, or slippage may have reduced the overall result. |
| Profitability % is high but returns are low | Profitable trades may be smaller than losing trades. Check Avg Profit and Avg Loss. |
| Max Loss is high | The strategy had a large cumulative loss during the backtest period. |
| Trading Exposure % is high | The strategy remained in open positions for a larger part of the backtest period. |
| Beta is high | The strategy moved more closely with the benchmark. |
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