How to Backtest a Pool
Use the backtest tool to see how a pool performed with different settings.
Key Takeaways
- The backtest tool uses real historical data to simulate your returns
- Test different range widths and rebalance delays to find what works best
- Check multiple time periods (30, 90, 365 days) for robust settings
What is Backtesting?
Backtesting means running a strategy against real historical data. You see what would have happened if you had deposited in the past.
It answers the question: "How much would I have earned in this pool with these settings?"
How to Use the Backtest Tool
- Go to snuggle.fi/backtest
- Select a pool (e.g., WETH/USDC 0.30%)
- Choose a time period (30, 90, or 365 days)
- Set a deposit amount
- Adjust range width and rebalance delay
- Click "Run Backtest"
The tool calculates your returns using real trading data from that period.
Reading the Results
The backtest shows you:
Total Return: Your percentage gain or loss over the period. This includes trading fees earned minus impermanent loss.
Fees Earned: Total trading fees your position would have earned.
Number of Rebalances: How many times Snuggle would have rebalanced your position.
Comparison to HODL: How your returns compare to simply holding the tokens.
Finding the Best Settings
Try different combinations:
Range Width: Start wide (10%) and narrow it down. Watch how returns change. Narrower ranges earn more fees but rebalance more often.
Rebalance Delay: Try 1 hour, 4 hours, and 8 hours. Longer delays mean fewer rebalances but more time out of range.
The sweet spot is where fees are high but rebalances are not too frequent.
Check Multiple Time Periods
A setting that worked great in a bull market might not work in a sideways market. Test across multiple periods:
- 30 days: Recent performance
- 90 days: Medium-term trend
- 365 days: Full cycle including ups and downs
Settings that perform well across all three periods are the most reliable.
What You Learned
- The backtest tool simulates returns using real historical data
- Adjust range width and rebalance delay to find optimal settings
- Test across multiple time periods for the most reliable results
Frequently Asked Questions
Is backtesting free?
How far back does the data go?
Should I always pick the highest-returning settings?
See how much you could earn.
Run a Backtest →