Backtesting

Building with open source tools? Check out our curated reviews of trading frameworks. Why Debugging Matters in Algo Trading A single logic error or API misfire in a trading bot can mean serious losses. Whether you’re backtesting or live trading, robust debugging practices are critical for safety, performance, and confidence in your automation. Here are the best practices I follow when debugging my trading bots. 1. Log Everything — Smartly Instead of print statements scattered everywhere, use Python’s built-in logging module: ...

Backtrader is one of the most popular open source frameworks for backtesting and live trading in Python. Its clean syntax, extensive documentation, and strong community make it ideal for both beginners and advanced traders. In this guide, we’ll walk through how to set up your first algorithmic trading strategy using Backtrader. New to Backtrader? Check out our detailed Backtrader overview to get started. Step 1: Install Backtrader You can install Backtrader using pip: ...

Backtesting and live trading are two sides of the same algorithmic coin. If you’re using an open source trading platform like Backtrader, Freqtrade, or QuantConnect Lean, understanding the difference — and the caveats — between these two stages is critical. What Is Backtesting? Backtesting is the process of simulating a trading strategy on historical market data to evaluate its performance. Goal: Test ideas without risking real capital Benefits: Fast iterations, insight into potential drawdowns and profitability Tools: Most open source platforms include robust backtesting engines ✅ Think of it as the strategy lab — no real money, no real consequences. ...