Help

Everything you need to get started with Portfolio Signals and understand your backtest results.

Getting Started

1

Choose a Strategy

Browse strategies by risk level or indicator type. Not sure? Start with 'Bullish Engulfing' — it's one of the most recognized candlestick patterns.

2

Configure & Run

Select a currency pair and date range, then click 'Run Backtest'. Default settings work well for a first test.

3

Read Your Results

You'll see performance metrics, an equity curve, and walk-forward analysis windows. Hover any metric for an explanation.

How to Read Your Results

After running a backtest, you'll see three main sections: an equity curve chart showing your strategy's value over time, a metrics summary with key performance numbers, and walk-forward analysis windows showing how the strategy performed across different time periods.

The equity curve shows gains and losses chronologically. A steadily rising curve is ideal. Large dips represent drawdowns — periods where the strategy lost value before recovering.

Walk-forward analysis splits the data into multiple windows to test if the strategy works consistently, not just in one specific period. Each window independently trains and tests the strategy, giving you confidence that results aren't just overfitting to historical data.

Glossary

Calmar Ratio

Annualized return divided by max drawdown. Measures return relative to worst-case loss. Higher is better.

Candlestick Pattern

A specific arrangement of one or more price bars (candlesticks) that traders use to predict future price movement. Examples include doji, engulfing, and hammer patterns.

Commission

A fixed dollar amount charged per trade by the broker.

Consistency Ratio

What percentage of walk-forward windows were profitable. Higher is better — it means the strategy works across different time periods.

Cost Modeling

The process of estimating real-world trading costs (spreads, commissions, slippage, funding) and subtracting them from backtest results to get a more realistic picture.

Currency Pair

Two currencies quoted against each other, such as EUR/USD. The first currency is the base and the second is the quote currency.

Equity Curve

A chart showing the value of your portfolio over time. A rising curve means the strategy is making money; dips represent drawdowns.

Expectancy

Average dollar amount expected per trade. Positive means the strategy makes money on average.

Funding Rate

The cost of holding a leveraged position overnight. Also called the swap rate or rollover rate.

Max Drawdown

The largest peak-to-trough decline during the test. Lower absolute values are better.

Under 10% is conservative; over 30% is aggressive.

p-Value

The probability that the observed returns occurred by chance.

Below 0.05 (5%) is considered statistically significant.

Profit Factor

Ratio of gross profits to gross losses.

Above 1.0 means the strategy is profitable overall. Above 2.0 is strong.

Risk Level

A classification of how aggressive a trading strategy is. Low-risk strategies trade less frequently with tighter stops; high-risk strategies take larger positions with wider stops.

Sharpe Ratio

Measures risk-adjusted return. Higher is better.

Above 1.0 is good; above 2.0 is excellent; below 0 means the strategy lost money relative to risk.

Slippage (bps)

The difference between expected and actual execution price. In fast markets, your order may fill at a slightly worse price.

Sortino Ratio

Like Sharpe ratio, but only penalizes downside volatility. Higher is better. More relevant for strategies that have asymmetric returns.

Spread (bps)

The cost of buying and selling a currency pair, measured in basis points (1 bps = 0.01%). This is the primary trading cost in forex.

Statistical Significance

A measure of whether the strategy's results are likely real or just due to random chance. A p-value below 0.05 is generally considered significant.

t-Statistic

Measures how far the strategy's returns are from zero. Higher absolute values indicate stronger evidence that returns are real, not luck.

Test Period

The final, unseen data used to evaluate the strategy. Results from this period are the most realistic measure of future performance.

Timeframe

The duration each candlestick represents on a chart. Common timeframes include 5-minute (5M), 1-hour (1H), and daily (1D).

Total Return

The overall percentage gain or loss of the strategy over the test period.

Training Period

The portion of historical data used to optimize or fit a strategy's parameters. The strategy 'learns' from this data.

Validation Period

Data used to check the strategy after training but before final testing. Helps prevent overfitting to the training data.

Walk-Forward Analysis

A method of testing a strategy by dividing historical data into multiple overlapping windows. Each window trains, validates, and tests the strategy independently to check if it works consistently.

Win Rate

Percentage of trades that were profitable.

Above 50% means more winning trades than losing ones, but win rate alone doesn't determine profitability.