| 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 runs to validate consistency before live deployment.
Important: Paper Results May Overstate Live Performance
Paper trading applies configurable fees (default 0.26% taker) and optional flat-rate slippage to market orders. However, it does not simulate partial fills, order book depth, or latency. Live trading on Kraken has variable maker/taker fees by volume tier, depth-dependent slippage, and possible partial fills on limit orders. Enable --slippage-rate (e.g., 0.001 for 0.1%) at workspace create for more conservative estimates. A strategy that is only marginally profitable on paper with fees and slippage enabled is likely unprofitable live.
Steps
- Define strategy parameters (pair, entry/exit rules, position size)
- Initialize paper account:
kraken workspace create sandbox --capital 10000 --mode paper --slippage-rate 0.001 -o json 2>/dev/null export KRAKEN_WORKSPACE=sandbox
- Round 1: execute strategy logic using paper buy/sell commands
- Record round 1 results:
kraken workspace status -o json 2>/dev/null + kraken paper history -o json 2>/dev/null
- Reset:
kraken workspace reset -o json 2>/dev/null
- Round 2 with same parameters at a different time (different market conditions)
- Record round 2 results
- Repeat for 3-5 rounds minimum
- Compare results: win rate, average P&L per trade, max drawdown, Sharpe-like ratio
- If results are consistent and positive, the strategy is a candidate for live promotion
- If results vary wildly, adjust parameters and re-test
If you hit a mismatch between what you are trying to do and the CLI's interface or responses — including a mismatch between this skill and the installed CLI version's contract — feel free to submit feedback with kraken feedback.
