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 engine, using the same production code deployed on the live platform, replayed approximately 1.07 billion historical order fills over a 375-day period, generating 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 explained that 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, while cautioning that the live trading period remains too limited to draw conclusions about future performance.
The backtest results underscore the potential of Perpetuals' AI-driven approach to trading, which aims to reduce risk by empowering retail users with intuitive and efficient trading experiences. 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, identifies patterns for trading and risk decisions, 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.
This announcement is significant as it provides evidence that AI-driven trading strategies can deliver substantial returns while managing risk, potentially attracting more retail investors to AI-powered platforms. However, the company cautions that backtest results do not guarantee future performance, and the live trading period is still too short to draw definitive conclusions. The full press release is available at https://ibn.fm/uZs4s.
Perpetuals.com 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 latest news and updates are available in its newsroom at https://ibn.fm/PDC.
