What the backtest computes
A backtest does not interpolate; it uses real daily closes. On each buy date it converts "amount ÷ that day price" into coins and adds them up.
It tracks the value curve as "coins × that day price", producing the number of buys, total invested, coins held, average cost, final value, P&L, return, and the maximum drawdown from peak to trough of the value curve.
Formulas
Σ(amount per buy ÷ price at that buy)amount per buy × number of buystotal invested ÷ coins heldcoins held × latest pricemax(1 − value ÷ running peak of value)Example (4 simplified buys, recompute it yourself)
Invest 500 USDT weekly for 4 weeks, prices 70,000 / 75,000 / 72,000 / 78,000 USDT:
Coins per buy = 0.00714286 / 0.00666667 / 0.00694444 / 0.00641026, so coins held = 0.02716422.
Total invested = 500 × 4 = 2,000 USDT; average cost = 2,000 ÷ 0.02716422 ≈ 73,626 USDT; final value = 0.02716422 × 78,000 ≈ 2,118.81 USDT.
Profit = 2,118.81 − 2,000 = 118.81 USDT, a return of about +5.94%. A real one-year weekly plan has about 52 buys, calculated exactly the same way.
Notes
A one-year result depends on the window chosen: different start and end dates give different returns and drawdowns. A backtest is a statistic about a past price path, not a forecast.
Backtests usually exclude fees and slippage; including them lowers the real return.
FAQ
How many buys are in a one-year weekly plan?
About 52. The backtest counts the buy dates that actually fall inside the window; use the tool output for the exact count.
What is maximum drawdown?
The largest fall of the value curve from any peak to a later low. If value drops from 2,000 to 1,700, drawdown = 1 − 1,700 ÷ 2,000 = 15%.
Can a backtest predict future returns?
No. It only reflects the price path of a past window; a different future path gives a different result.