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 using the same production code deployed on the live platform, it 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 significance of these results lies in the AI model's approach: rather than attempting to predict market prices directly, it identifies consistently successful traders and generates automated trading signals when qualified users independently take similar positions at roughly the same time. 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 volatile 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. This announcement is important because it provides a glimpse into the potential of AI-driven trading strategies, which could disrupt traditional trading paradigms by leveraging collective intelligence rather than price prediction.
The backtest results come as Perpetuals continues to expand its footprint in the fintech sector. 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, positioning the company as a regulated player in the evolving digital asset landscape.
The announcement underscores the growing role of AI in trading, where data-driven insights can lead to more informed decisions. While backtests are not indicative of future results, the positive performance across multiple quarters suggests that the BayesShield engine's methodology may have merit. As the platform gains more users and accumulates live trading data, the company will be able to validate these findings further. For now, the results offer a promising outlook for Perpetuals and its AI-powered trading solutions.
