> For the complete documentation index, see [llms.txt](https://docs.memejob.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.memejob.fun/memejob/introducing-ai-agents/agentic-and-data-layer/backtesting-strategy-performance.md).
# Backtesting Strategy performance
Backtesting allows you to evaluate how a strategy would have behaved on historical data before using it in live conditions. It helps assess signal quality, consistency, and basic risk characteristics.
Once a LUA strategy compiles successfully, users can evaluate its performance by clicking **Run**.\
Based on the selected **pSpan** configuration, the strategy is backtested across different time windows.
As the compiler progresses through historical data, signals are incrementally generated. Performance metrics include the **number of buy and sell signals** and their respective outcomes.
Backtesting does not predict future performance and should be used to compare strategies and understand behavior, not as a guarantee of outcomes.
Successful signals are displayed with a **green dot**, while losing signals are marked with an **orange dot**, allowing quick visual comparison across time windows.
