Signal Backtesting

Company: -

Backtesting Methodology

The analysis below simulates a trading strategy based on historical price data and generated signals to evaluate potential performance. This back-test is conducted using a standardized initial capital of PKR 100,000. To maintain a realistic and conservative execution model, the system follows a "first-signal" logic. In instances where multiple consecutive Buy or Sell signals are generated, the back-test executes only on the first Buy signal to enter a position and the first Sell signal to exit. This approach ensures a clear entry-to-exit cycle, providing a more accurate representation of how the strategy would have performed in a live market environment without over-trading.