Every creator wants their bot to perform well during unforeseen market conditions, which is why Trality offers an extensive list of predefined scenarios fit for purpose. A scenario represents a period of time when prices have persistent behavior. These include bull markets where prices tend to consistently rise and bear market where prices tend to consistently drop. By backtesting specific scenarios, it's possible to gain a better insight into how a strategy might perform should that type of market condition reoccur.
Simply select a scenario from the drop-down menu inside the backtester and press 'start'. Depending on the selected exchange and quoted currency, there might be different scenarios available to you.
Each scenario can be distinguished by:
1. Name: What kind of market condition is it. For example: sideways, upward, downward.
2. Asset pair: Which assets the bot is trading.
3. Tick interval: The lowest available tick interval for the given scenario. Please note: if you have a bot running on a lower tick interval than the scenario, you will not be able to select the scenario.
Keep in mind that scenarios might only be relevant for certain assets. We also might only have data available up to a certain tick interval.
Once you select a scenario from the drop-down menu, the Start Date and End Date will be filled in automatically (and you lose the ability to edit them). If you want to make changes to the dates, select the 'Custom Scenario' from the drop-down.
After you've run the backtester with your selected scenario, you can compare the bot's Total Return (%) with the Benchmark Total Return (%). As long as your bot's performance is higher than the benchmark, the bot has outperformed the general market.
Error message: "It appears we do not have any data for the scenario for the selected trading pairs."
When running a backtest with a scenario, you might receive the following error message:
This error message appears when the tick interval of your bot strategy is lower than what's available for the selected scenario. Remember, each scenario is defined by its tick interval. For example, if you select a scenario that has a tick interval of 1h, your bot cannot have a strategy with a tick interval lower than 1h.