Perpetuals.com Ltd. (NASDAQ: PDC) has announced the backtest results for version two of its patent-pending BayesShield artificial intelligence engine, which powers its UpsideOnly paper trading platform. Using the same production code deployed on the live platform, the company replayed approximately 1.07 billion historical order fills over a 375-day period. The backtest generated a hypothetical non-compounded return of 380% with a maximum drawdown of 27% and a return-to-drawdown ratio of 4.4. Starting with $400,000 in simulated capital, the strategy produced hypothetical profits of $1.522 million, ending the test period with $1.922 million.
The company said the AI model identifies consistently successful traders and generates automated trading signals when qualified users independently take similar positions at roughly the same time, rather than attempting to predict market prices directly. According to the backtest, the strategy posted positive returns in every calendar quarter, avoided liquidations during the test period and remained nearly flat during a sharp October 2025 Bitcoin sell-off.
Perpetuals also noted that UpsideOnly, launched in May 2026, has grown to more than 225,000 users and recorded $70 billion in simulated notional trading volume across 25 assets. However, the company cautioned that the live trading period remains too limited to draw conclusions about future performance. The full press release is available at https://ibn.fm/uZs4s.
These backtest results are significant because they suggest that BayesShield's approach—mimicking successful traders rather than predicting market movements—could offer a robust strategy with a favorable risk-return profile. The high return-to-drawdown ratio indicates that the strategy generated substantial returns relative to the risk taken, which is a key metric for evaluating trading systems. Additionally, the strategy's resilience during a sharp market downturn, such as the October 2025 Bitcoin sell-off, suggests potential defensive characteristics.
However, investors should note that backtested performance does not guarantee future results. The live trading period is still short, and the platform's growth to 225,000 users and $70 billion in simulated volume indicates strong adoption, but actual performance may differ. As with any AI-driven trading system, there are inherent risks, including model overfitting and changing market conditions.
The announcement comes as Perpetuals.com continues to expand its AI-powered trading products and prediction markets. The company's proprietary trading platform, Kronos X, combines advanced AI and data analysis, trained on billions of trades, and operates with full MiFID II, MiCA, DORA, and EMIR compliance. The positive backtest results for BayesShield could enhance confidence in the company's technology and its potential to deliver value to retail users.
For more information about Perpetuals.com, visit the company's newsroom at https://ibn.fm/PDC.
