> ## Content Index
> Fetch the complete content index at: https://blog.kryll.io/llms.txt
> Use this file to discover other available public pages before exploring further.

# How to read and understand your Backtest results
- URL: https://blog.kryll.io/how-to-read-and-understand-your-backtest-results/
- Published: 2018-09-28T00:00:00.000Z
- Updated: 2026-11-09T15:32:54.000Z
- Description: Understanding is the key
- Author: Kryll.io
- Tags: #Import 2026-11-03 15:02

### Understanding is the key

![](https://blog.kryll.io/content/images/downloaded_images/How-to-read-and-understand-your-Backtest-results/1-5R_vpf-ovfF10WsUWPql2w.png)

A good understanding of the result is mandatory to fine tune your strategy.

![](https://blog.kryll.io/content/images/downloaded_images/How-to-read-and-understand-your-Backtest-results/1-82li0ZX2QKR-VW9zTVRvUg.gif)

## Buy&Hold Vs Your awesome strategy

The results performances are always compared to Buy&Hold. This mean that your strategy results are compared to a date where you would have bought 100% of your traded currency and waited until the end of the backtest period. This way you can easily know if your strategy is better than a Buy&Hold attitude. The Numbers in the left columns are for Buy&Hold and the numbers on the right column is your strategy results.

**NUMBER OF TRADES:**  
This is the number of trades made on the exchange. This is a good way to have an idea of how much your exchange will charge you in fees, a lot of trade is not always a good thing.

**STARTING CAPITAL:**  
This is the initial capital of your strategy. Both B&H and your strategy start with the same amount for an optimum comparison.

**FINAL WALLET:**  
Everything have an end… This is the state of your strategy wallet (exchange fees taken into account). When you click on the **“+”** you’ll display the detail of your assets (ie: BNB and USDT) as you strategy may have not sold/buy all your traded currency, it can be splitted between your traded pair.

**STRATEGY RESULT:**  
Here you will find the raw results of your strategy. in our example if you had Hodl you would have lost **\-8.6%** of your initial capital (-86 USDT) while your awesome strategy have performed about **+27%**! (+270 USDT).

**PERFORMANCE ANALYSIS:**  
Maybe the most important numbers to check. These numbers are calculated on the difference between Buy&Hold final wallet and your strategy final wallet.   
ie: 1,270.32 - 913.45 = +356.87 USDT which is **+35.687%** profits. Congrats!

## My results are green but I’m loosing money, why ?

![](https://blog.kryll.io/content/images/downloaded_images/How-to-read-and-understand-your-Backtest-results/1-1mk9IvOftpR_Wz_wwHF6Dw.png)

This mean your strategy would have won against a Buy&Hold . In this case you would have lost **\-24.5795 USDT** with your strategy but you would have lost more by holding your funds **\-58.351 USDT**.

**What do colours represent?**

The colors represent the status of the wallet in relation to the buy and hold.

**\- Green:** your performance is better than Buy & Hold and it is positive  
**\- Orange:** your performance is worse than buy and hold but remains positive  
**\- Red:** your performance is worse than buy & hold

![](https://blog.kryll.io/content/images/downloaded_images/How-to-read-and-understand-your-Backtest-results/0-TXmuyt5vLMSxHOMW.png)

 performance is better than Buy & Hold and it is positive

![](https://blog.kryll.io/content/images/downloaded_images/How-to-read-and-understand-your-Backtest-results/0-IAD2AERM17P2ipDz.png)

 performance is worse than buy and hold but remains positive

![](https://blog.kryll.io/content/images/downloaded_images/How-to-read-and-understand-your-Backtest-results/0-uG8jHH1xqJgn3whq.png)

 your performance is worse than buy & hold

## It’s your turn now !

Now we are counting on you to make the best strategies ever ! Don’t hesitate to send your screenshots on the discord chat, or the telegram chat !

Happy Trading!

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