Backtesting Inputs & Recommendations

Backtesting Inputs Explained

Input	Description
Pair	The token pair and DEX you’re backtesting on (e.g., WETH/USDC on Uniswap v3).
Time Window (Days)	Number of past days used to generate the strategy’s signals. Controls how far back data is analyzed.
Timeframe	Candle resolution used for analysis. Options: 1D, 1H, etc.
Backtest Days	How many past days to simulate trades over using your inputs. Controls the length of the full backtest period.
Buy Threshold	Determines when the strategy should enter a position. Lower = more conservative.
Sell Threshold	When to exit a position. If set too low, you may exit too quickly and miss profits.
Separate Buy/Sell	Toggle to use different thresholds for buy and sell. If disabled, strategy uses same threshold for both directions.
Drawdown %	Max percentage loss before a position is exited. Helps manage risk but can reduce returns if set too tight.

Recommended Inputs

Time Window (Days)	20	Balanced lookback—enough to capture trend, but still responsive.
Timeframe	1H	Good mix of detail and performance across most pairs.
Buy Threshold	0.035 (short) / 0.1 (long)	0.035 for tighter, faster trades over periods of 30 days or less. 0.1 for steadier signals across 6–18 months.
Sell Threshold	0.025 (short) / 0.008 (long)	0.025 complements short-term buy threshold of 30 days or less. 0.008 for longer periods across 6-18 months.

Recommended Long-term Inputs for Blue-Chip Pairs (ETH, BTC, BNB)

For highly liquid, established assets like ETH, BTC, and BNB, the following strategies tend to perform best over longer timeframes with wider thresholds. These pairs generally exhibit more consistent trends and less erratic movement compared to microcaps, so your parameters can be tuned for patience and signal quality.

Time Window	20 days	Captures trend behavior without overfitting to short-term noise.
Timeframe	1H	Granular enough to react, but not overly sensitive to random volatility.
Backtest Days	180–540 (6–18 months)	Blue chips benefit from long backtests to identify sustainable performance.
Buy Threshold	0.1	Reduces noise and only triggers on meaningful dips.
Sell Threshold	0.008	Tightly protects gains without overreacting to small fluctuations.