Perpetuals.com Ltd. (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 company reported that the AI model generated a hypothetical non-compounded return of 380% over a 375-day period, with a maximum drawdown of 27% and a return-to-drawdown ratio of 4.4. The backtest replayed approximately 1.07 billion historical order fills using the same production code deployed on the live platform, starting with $400,000 in simulated capital and ending with $1.922 million after hypothetical profits of $1.522 million.
The AI engine operates by identifying consistently successful traders and generating 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. This announcement underscores the growing role of artificial intelligence in trading, but also highlights the importance of rigorous backtesting and the need for caution when extrapolating past results. For business and technology leaders, these results illustrate the potential of AI-driven strategies to generate significant returns while managing risk, but they also serve as a reminder that backtested performance does not guarantee future success.
The backtest results were announced in a press release, which can be viewed at https://ibn.fm/uZs4s. Perpetuals 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, monitors market activity in real time, and provides multi-asset coverage with self-clearing blockchain-based settlement.
The company’s licensed European Multilateral Trading Facility (MTF) infrastructure and Kronos X multi-asset exchange platform operate with full MiFID II, MiCA, DORA, and EMIR compliance. For investors and industry watchers, the backtest results provide a glimpse into the potential of AI in trading, but they also highlight the need for continued monitoring and validation.
