| name | backtesting-trading-strategies |
| version | 1.0.0 |
| description | Backtest crypto trading strategies against historical data with performance metrics.
Use when validating trading strategies with historical data.
Trigger with phrases like "backtest strategy", "test trading signals", or "validate approach".
|
| allowed-tools | Read, Write, Edit, Grep, Glob, Bash(crypto:backtest-*) |
| license | MIT |
Prerequisites
Before using this skill, ensure you have:
- Access to crypto market data APIs (CoinGecko, CoinMarketCap, or similar)
- Blockchain RPC endpoints or node access (Infura, Alchemy, or self-hosted)
- API keys for exchanges if trading or querying account data
- Web3 libraries installed (ethers.js, web3.py, or equivalent)
- Understanding of blockchain concepts and crypto market dynamics
Instructions
Step 1: Configure Data Sources
Set up connections to crypto data providers:
- Use Read tool to load API credentials from {baseDir}/config/crypto-apis.env
- Configure blockchain RPC endpoints for target networks
- Set up exchange API connections if required
- Verify rate limits and subscription tiers
- Test connectivity and authentication
Step 2: Query Crypto Data
Retrieve relevant blockchain and market data:
- Use Bash(crypto:backtest-*) to execute crypto data queries
- Fetch real-time prices, volumes, and market cap data
- Query blockchain for on-chain metrics and transactions
- Retrieve exchange order book and trade history
- Aggregate data from multiple sources for accuracy
Step 3: Analyze and Process
Process crypto data to generate insights:
- Calculate key metrics (returns, volatility, correlation)
- Identify patterns and anomalies in data
- Apply technical indicators or on-chain signals
- Compare across timeframes and assets
- Generate actionable insights and alerts
Step 4: Generate Reports
Document findings in {baseDir}/crypto-reports/:
- Market summary with key price movements
- Detailed analysis with charts and metrics
- Trading signals or opportunity recommendations
- Risk assessment and position sizing guidance
- Historical context and trend analysis
Output
The skill generates comprehensive crypto analysis:
Market Data
Real-time and historical metrics:
- Current prices across exchanges with spread analysis
- 24h volume, market cap, and circulating supply
- Price changes across multiple timeframes (1h, 24h, 7d, 30d)
- Trading volume distribution by exchange
- Liquidity metrics and slippage estimates
On-Chain Metrics
Blockchain-specific analysis:
- Transaction count and network activity
- Active addresses and user growth metrics
- Token holder distribution and concentration
- Smart contract interactions and DeFi TVL
- Gas usage and network congestion indicators
Technical Analysis
Trading indicators and signals:
- Moving averages (SMA, EMA) and trend identification
- RSI, MACD, Bollinger Bands technical indicators
- Support and resistance levels
- Chart patterns and breakout signals
- Volume profile and accumulation zones
Risk Metrics
Portfolio and position risk assessment:
- Value at Risk (VaR) calculations
- Portfolio correlation and diversification metrics
- Volatility analysis and beta to market
- Drawdown statistics and recovery times
- Liquidation risk for leveraged positions
Error Handling
Common issues and solutions:
API Rate Limit Exceeded
- Error: Too many requests to crypto data API
- Solution: Implement request throttling; use caching for frequently accessed data; upgrade API tier if needed
Blockchain RPC Errors
- Error: Cannot connect to blockchain node or timeout
- Solution: Switch to backup RPC endpoint; verify network connectivity; check if node is synced
Invalid Address or Transaction
- Error: Blockchain address format invalid or transaction not found
- Solution: Validate address checksums; verify network (mainnet vs testnet); allow time for transaction confirmation
Exchange API Authentication Failed
- Error: Invalid API key or signature mismatch
- Solution: Regenerate API keys; verify permissions (read/trade); check system clock synchronization for signatures
Resources
Crypto Data Providers
- CoinGecko API for market data across thousands of assets
- Etherscan API for Ethereum blockchain data
- Dune Analytics for on-chain SQL queries
- The Graph for decentralized blockchain indexing
Web3 Libraries
- ethers.js for Ethereum smart contract interaction
- web3.py for Python-based blockchain queries
- viem for TypeScript Web3 development
- Hardhat for local blockchain testing
Trading and Analysis Tools
- TradingView for technical analysis and charting
- Glassnode for advanced on-chain metrics
- DeFi Llama for DeFi protocol analytics
- Nansen for wallet tracking and smart money flows
Best Practices
- Never store private keys or seed phrases in code
- Always verify smart contract addresses from official sources
- Use testnet for experimentation before mainnet
- Implement proper error handling for network failures
- Monitor gas prices before submitting transactions
- Validate all user inputs to prevent injection attacks
