No-Trust Protocol for Backtesting Systematic Trading Algorithms

TL;DR: Backtesting trading algorithms lacks a transparent, reproducible standard. Results can’t be reliably verified. Could a no-trust, open protocol help?

Backtesting is the foundation of systematic trading algorithms — yet there’s still no open, verifiable standard for how backtests should be recorded, structured, reproduced, or audited. Everyone seems to be using their own JSON/CSV formats. You can usually read another person’s backtest output, but you can’t reliably verify it.

I’m thinking about a no-trust protocol: a specification defining how backtests should be logged, hashed, documented, and reproduced. It’s not a product or a platform, just an open protocol anyone can implement.

Key ideas could include:

fixed, open schemas for inputs and outputs

cryptographic consistency checks

required metadata for full reproducibility

deterministic execution guidelines

fully open-source reference tools

complete auditability, zero-trust assumptions

A decentralized, peer-to-peer implementation could ensure backtest data remains publicly verifiable while avoiding central control. The protocol would need to remain neutral and non-commercial to preserve its integrity.

I’m just a beginner exploring this idea, so this is more a thought than a proposal. Does anyone know if something like this already exists?