recipe-paper-strategy-backtest

name	recipe-paper-strategy-backtest
version	1.0.0
description	Backtest a trading strategy using paper trading against live prices.
metadata	{"openclaw":{"category":"recipe","domain":"strategy"},"requires":{"bins":["kraken"],"skills":["kraken-paper-strategy"]}}

Paper Strategy Backtest

PREREQUISITE: Load the following skill to execute this recipe: kraken-paper-strategy

Run a strategy through multiple paper sessions to validate consistency before live deployment.

Important: Paper Results Overstate Live Performance

Paper trading fills at the exact quoted price with no fees, no slippage, and no partial fills. Live trading on Kraken incurs maker/taker fees (0.16%/0.26% at base tier), slippage on market orders, and possible partial fills on limit orders. When comparing session results in step 9 below, subtract at least 0.26% per fill from paper returns to get a more realistic estimate. A strategy that is only marginally profitable on paper is likely unprofitable live.

Steps

1. Define strategy parameters (pair, entry/exit rules, position size)
2. Initialize paper account: kraken paper init --balance 10000 -o json 2>/dev/null
3. Run session 1: execute strategy logic using paper buy/sell commands
4. Record session 1 results: kraken paper status -o json 2>/dev/null + kraken paper history -o json 2>/dev/null
5. Reset: kraken paper reset -o json 2>/dev/null
6. Run session 2 with same parameters at a different time (different market conditions)
7. Record session 2 results
8. Repeat for 3-5 sessions minimum
9. Compare results: win rate, average P&L per trade, max drawdown, Sharpe-like ratio
10. If results are consistent and positive, the strategy is a candidate for live promotion
11. If results vary wildly, adjust parameters and re-test