Backtesting

kdb Insights Enterprise Backtesting

Launch

In this demo, we will build and configure a Backtesting solution on kdb Insights Enterprise. Backtesting is a vital process in the development and validation of trading strategies. It involves applying a trading strategy to historical market data to evaluate how it would have performed in the past. By simulating trades using past data, traders and analysts can assess the strategy’s effectiveness, identify potential weaknesses, and make necessary adjustments before deploying it in live markets. This process helps ensure that the strategy is robust and capable of delivering consistent results, thereby reducing the risk of unexpected losses and enhancing overall trading performance. Click here to begin.

kdb Insights Enterprise - Backtesting

To begin, we will select the Databases node from the left hand menu. The database is a core component of kdb Insights Enterprise and used to store and manage our ingested data. Click Databases to continue.

kdb Insights Enterprise - Backtesting

The schema defines the structure and organization of the database, including how data will be stored and how tables will relate to each other. Click Add Data Column to continue.

kdb Insights Enterprise - Backtesting

kdb Insights Enterprise supports over 100 data types. With the schema completed, we will begin building our pipeline. Click here to continue.

kdb Insights Enterprise - Backtesting

kdb Insights Enterprise supports live data streaming. Streaming data is processed immediately on arrival, allowing for instant analysis. The real-time nature makes streaming ideal for applications that require up-to-date information. Click next to continue.

kdb Insights Enterprise - Backtesting

The data ingestion process is managed by pipelines, which are powered by the kdb Insights Enterprise Stream Processor, a streaming service for transforming and analyzing both real-time and historical data. We will begin by expanding Readers to show all available operators. Click Readers to continue.

kdb Insights Enterprise - Backtesting

kdb Insights Enterpise comes pre-packaged with a number of predefined operators, enabling users to quickly define data pipelines. In this instance, we will select an operator to ingest data from Amazon S3 Storage. Click Amazon S3 to continue.

kdb Insights Enterprise - Backtesting

Using the drag and drop canvas in the middle of the screen we can chain different operators together to form a streaming or batch ingestion & transformation pipeline. Pipelines can be developed and deployed from code. Click here to continue.

kdb Insights Enterprise - Backtesting

Pipelines can also be deployed using industry standard code such as Python or our proprietary language q. This is an example using the KXI command-line interface Click here to continue.

kdb Insights Enterprise - Backtesting

kdb Insights Enterprise supports over 40 components, which can be added to views and enable non-developers to gain unparalled insight from company data. On the next page we will explore the results of our TCA application. Click here to continue.

kdb Insights Enterprise - Backtesting

kdb Insights Enterprise comes with an embedded version of KX Dashboards, enabling users to create visualizations of data. Using a simple drag and drop interface, users can enable feature-rich components, including charts, maps, and data grids. Click Select Item to continue.

kdb Insights Enterprise - Backtesting

Our Demo is split between 3 dashboards or views. The Backtesting - Top of Book view provides data around pricing and spread. Information is provided per symbol which can be selected via dropdown in the top left of the screen. This view allows users to monitor spread behavior for each symbol in real time, aiding in refined trading strategies. Click here to continue.

kdb Insights Enterprise - Backtesting

Backtesting - Latency has two tabs. The Replay Summary tab provides information on the status of the job running. Statistics around duration and messages per second are also provided. The summary presents a consolidated view of the status of the backtest, supporting quick comparisons between various scenarios and datasets. Click here to continue.

kdb Insights Enterprise - Backtesting

The Backtest Summary tab contains graphs outlining Latency and the Datacounts. Additional statistics can be seen in the top right hand panel of the screen. This view offers insights into network and system latency, crucial for understanding time delays in data processing and order execution. This complete our walkthrough, please click here to continue.

kdb Insights Enterprise - Backtesting

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