Deep Dive into Backtest Settings
The QuantiX platform offers a comprehensive suite of backtesting options and settings. While this flexibility is powerful, navigating the platform can occasionally feel overwhelming.
This page provides practical case studies and examples to clarify how these settings work in action.
Understanding Portfolio Mode
The best way to understand this feature is through a concrete example.
Assume you want to invest $1,000 across three assets: BTC/USDT, ETH/USDT, and BNB/USDT. However, because you have greater confidence in the growth potential of ETH/USDT, you want to allocate a larger percentage of your capital to it.
The Ratio values in this dialog allow you to customize these allocations within your backtest strategy.
Asset | Ratio | Allocated Funds |
|---|---|---|
BTC/USDT | 1 | $250 |
ETH/USDT | 2 | $500 |
BNB/USDT | 1 | $250 |
How the Calculation Works
As shown in the table, the platform calculates the allocation by dividing the total capital by the sum of all ratios. It then multiplies this base unit by the specific ratio assigned to each asset.
In this case, the total ratio sum is
Max Trade
The Max Trade value limits the total number of concurrently open trades at any given time. The following sections outline how this feature operates and how it interacts with Portfolio Ratio values under different scenarios.
Scenario 1: Max Trade Equals the Total Number of Assets
In this scenario, notice that when the software already holds an open ETH/USDT position and receives a second buy signal for the same asset, it takes no action. However, when buy signals for the other two distinct assets arrive, the system enters the market normally.
Configuration: Max Trade: 3 | Money Management Strategy: Fixed | Total Funds: $1,000
Signal ID | Asset | Portfolio Ratio | Fund Allocation | Funds Remaining |
|---|---|---|---|---|
1 | ETH/USDT | 2 | $500 | $500 |
2 | ETH/USDT | 2 | $0 | $500 |
3 | BTC/USDT | 1 | $250 | $250 |
3 | BNB/USDT | 1 | $250 | $0 |
Scenario 2: Max Trade is Less Than the Total Number of Assets
Here, the backtest restricts the system to a maximum of two open trades at any point, meaning it can never hold positions in more than two assets simultaneously.
Because the maximum capacity drops to a ratio sum of
Configuration: Max Trade: 2 | Money Management Strategy: Fixed | Total Funds: $1,000
Signal ID | Asset | Portfolio Ratio | Fund Allocation | Funds Remaining |
|---|---|---|---|---|
1 | ETH/USDT | 2 | $666 | $333 |
2 | ETH/USDT | 2 | $0 | $333 |
3 | BTC/USDT | 1 | $333 | $0 |
4 | BNB/USDT | 1 | No funds for trade | $0 |
Scenario 3: Max Trade is Set to One
In this scenario, the backtest enforces a strict single-trade limit. The system will never trade more than one asset at any given time. The very first asset to trigger a signal captures the entirety of the available capital.
Configuration: Max Trade: 1 | Money Management Strategy: Fixed | Total Funds: $1,000
Signal ID | Asset | Portfolio Ratio | Fund Allocation | Funds Remaining |
|---|---|---|---|---|
1 | ETH/USDT | 2 | $1,000 | $0 |
2 | ETH/USDT | 2 | $0 | $0 |
3 | BTC/USDT | 1 | No funds for trade | $0 |
4 | BNB/USDT | 1 | No funds for trade | $0 |
Money Management Strategy
The table below outlines the core money management modes available on the platform and how they handle capital allocation, profits, and losses.
Mode | Description |
|---|---|
Fixed | Trades using the initial capital. Losses reduce the available capital for subsequent trades, but gains do not increase the position size. |
Compound | Reinvests capital dynamically. Losses reduce the position size, while gains are compounded back into the pool to scale future investments. |
Borrow | Assumes an infinite pool of capital. The system automatically borrows funds to maintain the initial position size whenever capital falls below the starting threshold. |
Scenario Analysis
To illustrate how these modes impact backtesting logic, let's look at an example of investing $1,000 into a single asset over three consecutive trades:
Trade ID | Returns (%) |
|---|---|
1 | -30% |
2 | +100% |
3 | +20% |
1. Fixed Mode
In Fixed mode, the backtest attempts to enter each trade using the maximum available capital up to the initial investment amount ($1,000). Profits are stored separately and are not reinvested. However, if a loss occurs, subsequent trade sizes are capped by the remaining capital on hand until profits recover the balance back to or above the initial starting amount.
Trade ID | Investment Amount | Profit / Loss | Portfolio Value | Portfolio Profit (%) |
|---|---|---|---|---|
1 | $1,000 | -$300 | $700 | -30% |
2 | $700 | +$700 | $1,400 | +40% |
3 | $1,000 | +$200 | $1,600 | +60% |
2. Compound Mode
In Compound mode, the backtest dynamically reinvests 100% of the account's current total value. As a result, position sizes scale down after a loss and scale up after a win, compounding your returns over time.
Trade ID | Investment Amount | Profit / Loss | Portfolio Value | Portfolio Profit (%) |
|---|---|---|---|---|
1 | $1,000 | -$300 | $700 | -30% |
2 | $700 | +$700 | $1,400 | +40% |
3 | $1,400 | +$280 | $1,680 | +68% |
3. Borrow Mode
In Borrow mode, the platform ensures that the investment amount for every single trade matches your initial starting capital ($1,000). If a loss drops the portfolio value below this threshold, the system simulates "borrowing" the difference to keep the trade sizes consistent.
This tracking allows you to assess the depth of drawdown a strategy experiences and measure how much leverage or extra capital would be required to survive a specific market condition.
Trade ID | Investment Amount | Profit / Loss | Portfolio Value | Borrowed Amount | Portfolio Profit (%) |
|---|---|---|---|---|---|
1 | $1,000 | -$300 | $700 | $0 | -30% |
2 | $1,000 | +$1,000 | $2,000 | $300 | +70% |
3 | $1,000 | +$200 | $2,200 | $300 | +90% |