The backtest is what stands behind the inclusion of a trading bot into a live market environment. Before any strategy is applied to actual trading money, it should go through a number of simulations based on historical price data. Backtest, in its turn, completely depends on the architecture of the underlying software solution, because strategy, data handling, and execution modules should work separately without impacting each other. The reason here is pretty obvious – historical simulations shouldn't affect any live exchanges in any way.
The proper functioning of separate modules of the trading bot is quite an engineering task rather than the issue of convenience. Developers should take into consideration such aspects as accuracy of data, delay in time between signals and execution of a particular order and the response of the strategy to any unexpected change of market conditions.
This is exactly the structural work performed by a
Crypto Trading Bot Development Company when creating a codebase for their clients and it is the same reason why backtesting is so important for Crypto Trading Bot Development Services.
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