Backtest Methodology

All backtests use NSE EOD (end-of-day) OHLCV data. The dataset covers a minimum of 8 years for each screener, including full bull and bear market cycles — the 2018 selloff, the March 2020 crash, the 2021–2022 post-pandemic correction, and the 2022 rate-hike drawdown are all in the record.

Entry is taken at the next trading day’s open after a signal is generated at EOD. This removes look-ahead bias — the screener never “knows” the next day’s price when generating the signal.

Exit is the first of: target hit (intraday touch), stop hit (intraday touch), or a maximum hold period (screener-specific, typically 10–15 sessions).

• All results include losing trades — no cherry-picking
• Worst stretch (max consecutive loss run) is always published
• Max drawdown is measured peak-to-trough on the equity curve, not trade-by-trade
• Profit factor = gross profits ÷ gross losses on closed trades only
• Win rate is on closed trades only — open positions are excluded
• No look-ahead bias: entry is on the next open after the signal date
• Slippage and brokerage estimated at ₹20 per side per trade

A screener with a 58% win rate does not mean 58% of signals will produce gains for you. Execution timing, position sizing, slippage on illiquid names, and market regime all affect real-world outcomes. The backtest tells you what the rules produced on historical data — it does not predict future performance.

We believe showing only win rates and profit factors is misleading. A screener that wins 56% of the time but has a 25% max drawdown is a very different risk proposition than one with 52% wins and a 10% max drawdown. Both statistics belong in your decision.

Methodology questions: data@edgescan.in