Perpetuals.com (NASDAQ: PDC) has released backtest results for version two of its patent-pending BayesShield artificial intelligence engine, which powers its UpsideOnly paper trading platform. The backtest, conducted over a 375-day period, replayed approximately 1.07 billion historical order fills using the same production code deployed on the live platform. The results showed a hypothetical non-compounded return of 380% with a maximum drawdown of 27%, resulting in 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 AI model behind UpsideOnly 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. This approach, known as copy trading, allows less experienced traders to benefit from the strategies of proven performers. 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, demonstrating resilience in adverse market conditions.
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.
The announcement is significant because it provides a data-driven glimpse into the potential effectiveness of AI-powered copy trading platforms. With the growing popularity of retail trading and the increasing sophistication of AI, this backtest suggests that such platforms could offer a viable way for individual investors to achieve substantial returns while managing risk. The high return-to-drawdown ratio indicates that the strategy aims to minimize losses during market downturns, which is crucial for long-term capital preservation.
However, it is essential to approach these results with caution. Backtested performance is hypothetical and does not guarantee future results. The live trading period is short, and market conditions can change rapidly. Investors should consider these limitations before making any decisions based on this information.
Perpetuals.com Ltd (NASDAQ: PDC) is a fintech company developing AI-powered trading products and prediction markets, with a global footprint across the United States, Europe, and Asia. Its mission is to reduce risk by empowering retail users with intuitive, secure, and efficient trading experiences across multiple asset classes. The company's proprietary trading platform, Kronos X, combines advanced AI and data analysis, trained on billions of trades, and provides multi-asset coverage with self-clearing blockchain-based settlement. Its licensed European Multilateral Trading Facility (MTF) infrastructure operates with full MiFID II, MiCA, DORA, and EMIR compliance.
For the latest news and updates relating to PDC, visit the company's newsroom at https://ibn.fm/PDC.
