Pegasus Logo Pegasus Backtest Tool

Quick Start (Recommended for First-Time Users)

Default settings are already loaded: BTCUSD with $100 test amount for 12 months.

Custom Test Settings

Default: BTCUSD
Default: $100
Default: 12 Months

Dollar Cost Average Configuration:

Starts to DCA as the price goes up from the current price.
Will change the liquidation price as it rises and each DCA occurs. The liquidation price is furthest away using this option and makes it safer than Choice 2.

Starts with a bigger position but closer liquidation price.
Has No DCA and the liquidation price remains approximately the same until the price goes above the recent high. Due to a liquidation price closer to the current price, is higher risk than Choice 1.

Choice 2 uses the same % from the current price to liquidation price you would have used in Choice 1 and uses this to calculate it from the recent high instead. This allows you to add more position amount and still remain in the boundaries of the Pegasus Back-test midpoint leverage.

Note: The "Current Price" option is the safest choice and recommended for most users. The "Recent High" option is riskier and should only be used by experienced traders who understand the risks involved.

How to Configure Custom Tests:

  1. Select a different market pair from the dropdown if desired
  2. Adjust your test amount if needed - this simulates your initial investment
  3. Choose your timeframe using the preset periods or enable custom date range
  4. Click "Run Custom Test" to run the simulation with your settings

Important Disclaimers

Understanding Results

Understanding Midpoint Leverage

What is Midpoint Leverage? It's a strategic approach that uses the leverage level exactly halfway between 0x and the liquidation point. This creates a balanced risk-reward profile that professional quantitative investors often utilize.

Why use Midpoint Leverage? It provides three key benefits:

  • Safety margin: Maintains a safe distance from liquidation while still amplifying returns
  • Optimal capital efficiency: Balances risk exposure with potential returns
  • DCA-friendly: Allows for dollar-cost averaging to build positions over time

Long-term advantages: For investors with a multi-year horizon, Midpoint Leverage can significantly outperform buy-and-hold strategies while avoiding the extreme risk of maximum leverage. Many long-term holders use this approach to:

  • Reduce the total capital needed for meaningful positions
  • Potentially benefit from more favorable tax treatment (vs. frequent trading)
  • Amplify returns during bull markets while maintaining a buffer against drawdowns

Disclaimer: This is not financial advice. Leveraged positions always carry additional risk. Never invest more than you can afford to lose. Past performance does not guarantee future results.

Backtest Results for

Key Takeaways

Market Overview

Initial Price $ ()
Final Price $ ()
Calculation Method Current Price
Recent High
Buy & Hold Return
The return you would get if you simply bought and held the asset for the entire period
Buy & Hold Balance

Pegasus Performance (Test Amount: $100)

Current PnL
Current profit/loss percentage using the optimal leverage
Final Balance
Highest PnL Reached
The highest profit percentage reached during the backtest period, typically at the all-time high price
All-Time High Balance
Maximum dollar value reached during the backtest period, achieved at the all-time high
Average Entry Price
The average price at which the position was entered. The percentage shows how far this price is from the current price as a drawdown percentage.
$

Position Management

Mid point Leverage
This is the optimal leverage level (exactly halfway between 0x and liquidation point). It balances potential returns with risk management and is used by professional investors. Click to learn more about this strategy.
Liquidation Level
Maximum leverage before position liquidation risk
Liquidation Price
The price at which the position would be liquidated. The percentage shows how far current price would need to drop (drawdown) to reach liquidation.
$

Risk Analysis

Maximum Drawdown
The largest percentage drop from a peak to a trough during the testing period. This measures the strategy's worst-case historical loss from a peak to a subsequent trough.
Average Drawdown
The average percentage drop from peaks to troughs during the testing period. This provides a sense of the typical losses experienced before recovery.
Daily Price Range
Typical daily price movement range (68% of the time)
to

Position Growth Analysis

Initial Exposure
Total value of spot holdings and positions at the start
Final Exposure
Current total value of spot holdings and positions

Market Conditions

Volatility (ATR) Âą
Funding Rate
Average cost of holding positions, paid every 8 hours

Detailed Analysis by Leverage

Leverage Final PnL % Max PnL % Position Size
Start → Final position amount
Position Value ($) Entry Price Spot Holdings
Start → Final spot amount
Final Balance ($) Unrealized PnL Total Fees ($)
Combined funding and exchange fees

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⚠ī¸ Important Disclaimers

Before using this backtesting tool, please carefully read and acknowledge the following disclaimers:

Quick Start Guide:

For your convenience, default settings (BTCUSD with $100 test amount for 12 months) are already loaded. You can click the "Run Default Test" button at the top to instantly see results.

By clicking 'I Understand', you acknowledge that you have read and understood these disclaimers and agree to use this tool responsibly.