BackSpace/LLM backtesting showcase

The backtesting lab, interpreted in plain English by the LLM layer.

Before any deep analytics, users get a clear narrative of what changed, where performance held, and why a strategy failed in specific environments. The LLM component translates quantitative backtest output into operator-ready decision context.

BackSpace LLM · decision explanation layerHUMAN-READABLE

> Why did this strategy degrade in elevated volatility during Q4?

The model identifies two drivers: spread expansion reduced fill quality, and entry timing drifted into low-liquidity windows.

Suggested review: tighten liquidity filter, constrain entry to high-participation intervals, rerun by regime segment.

Decision support only. The assistant explains outcomes and tradeoffs; it does not auto-route trades.

I/LLM interpretation layer

The first read is narrative, not raw tables.

BackSpace runs deterministic calculations first, then the LLM layer explains outcomes in plain language: what improved, what degraded, and which conditions actually drove the result. This keeps the desk fast without hiding the underlying evidence.

Regime-aware explanation

Summaries are segmented by trend, compression, and volatility expansion regimes.

Parameter sensitivity narrative

The assistant explains why sizing, slippage, or entry rules altered outcomes.

Audit-friendly output

Narratives tie back to run metadata so every statement is traceable to a result set.

II/Backtest compute foundation

Deterministic computation still drives every run.

The LLM does not replace the engine. It sits on top of reproducible calculations: historical replay, environment breakdowns, slippage modeling, and run-level metrics. Narrative quality only matters if the compute substrate is defensible.
Backtest · Momentum Breakout · QQQ · 2019–2026run · a3f9c1

Equity & drawdown

Monthly returns

J
F
M
A
M
J
J
A
S
O
N
D

By environment

Compressed vol
71%
Trending
64%
Elevated vol
52%
Mean-reverting
38%

Sharpe

1.84

Profit factor

2.31

Max drawdown

-11.4%

Win rate

58.2%

Historical replay

Run the decision against the exact market context it originally faced.

Environment diagnostics

Break performance out by regime to identify where strategy edges collapse.

Lineage & reproducibility

Each run keeps its seed, params, and source revision for exact reruns.

III/Dashboard direction

Backtesting in Dashboard is now LLM-first.

The Dashboard backtesting component is aligned to this direction: an interactive LLM assistant that reads run context and helps users refine hypotheses. This keeps the workflow ready for a future fork to a specialized model stack.

Dashboard component plan · LLM backtesting assistant

The tab is positioned as an operator assistant: ask why drawdown clustered, compare two runs, and get suggested next experiments before re-running compute.

It is built as a modular UI surface so you can fork the model provider later without redesigning the surrounding dashboard workflow.

Current product stance: explain and prioritize decisions, never auto-execute positions.

Fork-ready interface

Prompt and response surface designed to be provider-agnostic.

Run-context aware

Assistant phrasing assumes run ids, environment slices, and model metadata.

Execution boundary

No direct trade routing from assistant output.