Funding-aware backtest

Why futures funding belongs in every crypto backtest

A futures strategy can look viable before funding and fail once recurring holding costs are included. The longer positions remain open, the more important the separation becomes.

Futures7 minReviewed: July 28, 2026

Explore the futures demo Back to all guides

Practical outcomeA net-result review that identifies whether trades, fees, or funding drive the outcome.

Funding compounds with holding time

Count how many funding intervals a typical position crosses and whether the strategy tends to pay or receive funding. A small recurring debit can dominate a low-frequency edge.

Separate trading PnL, fees, and funding

A single net number hides the reason a strategy works or fails. Review the three components independently and compare them across holding periods.

Stress the rate assumption

Historical funding is not a promise about future rates. Test whether a less favorable rate or a longer holding period removes the expected advantage.

Put it into practice

Audit one futures result

Use an existing report or the public demo and answer these questions.

Record gross trading PnL, total fees, total funding, and average holding time separately.
Identify which positions crossed funding timestamps and whether their direction usually paid or received.
Recalculate the decision using a less favorable funding assumption and note whether it still passes.

Minimum research record

Keep these inputs with every result so the test can be reproduced and compared without relying on memory.

Exchange, market type, symbols, timeframe, and exact date range.
Starting balance, position sizing, leverage, and risk limits.
Entry, exit, stop-loss, take-profit, and filter configuration.
Fee, funding, and execution assumptions used by the simulation.
Net result, drawdown, trade count, losing periods, and known anomalies.

What this evidence cannot prove

A backtest cannot guarantee future returns or fully reproduce liquidity, order-book depth, latency, slippage, rejected orders, exchange downtime, or future funding rates. Use the result to reject weak assumptions and design the next controlled test—not as permission to take unlimited risk.

Continue the research path

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Funding-aware backtest

Find out what actually produced the net result

Inspect the demo report with costs in view. A strategy should not advance because gross PnL hides an unfavorable funding profile.

Explore the futures demo Open guided learning

Why futures funding belongs in every crypto backtest

A futures strategy can look viable before funding and fail once recurring holding costs are included. The longer positions remain open, the more important the separation becomes.

Futures7 minReviewed: July 28, 2026

Practical outcomeA net-result review that identifies whether trades, fees, or funding drive the outcome.

Audit one futures result

Use an existing report or the public demo and answer these questions.

Record gross trading PnL, total fees, total funding, and average holding time separately.

Identify which positions crossed funding timestamps and whether their direction usually paid or received.

Recalculate the decision using a less favorable funding assumption and note whether it still passes.

Minimum research record

Keep these inputs with every result so the test can be reproduced and compared without relying on memory.

Exchange, market type, symbols, timeframe, and exact date range.

Starting balance, position sizing, leverage, and risk limits.

Entry, exit, stop-loss, take-profit, and filter configuration.

Fee, funding, and execution assumptions used by the simulation.

Net result, drawdown, trade count, losing periods, and known anomalies.