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Cryptocurrency backtesting

Backtest cryptocurrencies on historical data allows us to analyze the dynamics of the crypto portfolio. Using the backtest module in Holderlab.io, you can get an assessment of the chosen strategy.

Let’s see how you can experiment with cryptocurrencies in the backtest module of Holderlab.

Cryptocurrency backtest dashboard

cryptocurrency backtest
Cryptocurrency backtest dashboard

A dashboard consists of a block of cryptocurrency choices, starting with Bitcoin, Ethereum, XRP and many others. Select cryptocurrencies manually using the (+) button or use the search.

To find cryptocurrencies of interest related to cryptocurrency exchanges, select a connected cryptocurrency exchange: Binance or Huobi or others. The list of cryptocurrencies for selection will correspond to the selected crypto exchange.

Cryptocurrency Testing Toolbar

Let us consider in more detail the top toolbar of the testing unit, which consists of:

Start date – select the start date of the test.

End date – select the end date of the test.

Add amount – allows you to choose a starting balance of $ to start testing.

Rebalancing options – allows to choose a strategy for rebalancing cryptocurrencies. Rebalancing strategies include a choice between threshold and periodic rebalancing.

Load portfolio – select early saved portfolios.

Read more about rebalancing strategies here: https://docs.holderlab.io/knowledge-base/threshold-rebalancing-assets/

Cryptocurrency backtesting software

Let’s test an example of a cryptocurrency portfolio and look at the results.

  1. Choose assets, as an example we will take the first four cryptocurrencies: BTC, ETH, XRP, BCH. The amount of assets should be equal to 100%.
selection of cryptocurrency
Selection of Crypto Assets

2. Select the test parameters, the initial deposit and the strategy of periodic rebalancing. In the example, rebalancing is selected 1 time per week and 5% threshold.

cryptocurrency backtesting rebalance
Cryptocurrency backtesting parameters

Cryptocurrency backtesting results

Test results are expressed graphically with the ability to switch between USD and BTC.

Cryptocurrency chart
Cryptocurrency Portfolio Performance Chart

The module illustrates the deviation of each crypto asset in%.

Cryptocurrency deviation
Cryptocurrency Deviation

The final test results and detailed parameters for each cryptocurrency.

Portfolio Returns

With the help of Holderlab.io you can test cryptocurrencies for free for 7 days!

We wish you successful backtest!

Updated on February 6, 2020

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