Perpetuals.com Ltd. (NASDAQ: PDC) has announced backtest results for version two of its patent-pending BayesShield artificial intelligence engine, which powers its UpsideOnly paper trading platform. The results, based on the same production code deployed on the live platform, replay approximately 1.07 billion historical order fills over a 375-day period. The hypothetical non-compounded return was 380% with a maximum drawdown of 27%, yielding 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 engine's approach: it 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 methodology, which leverages collective intelligence, could represent a paradigm shift in retail trading, potentially leveling the playing field against institutional traders. The backtest showed positive returns in every calendar quarter, avoided liquidations during the test period, and remained nearly flat during a sharp October 2025 Bitcoin sell-off, underscoring the strategy's robustness.
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 the live trading period remains too limited to draw definitive conclusions about future performance, the backtest results provide a compelling proof of concept. 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.
These developments come at a time when AI integration in financial services is accelerating, but regulatory compliance remains a critical factor. Perpetuals' licensed European Multilateral Trading Facility (MTF) infrastructure and Kronos X platform operate with full MiFID II, MiCA, DORA, and EMIR compliance, positioning the company to navigate the complex regulatory landscape. The backtest results not only validate the BayesShield engine's potential but also highlight the growing role of AI in democratizing access to sophisticated trading strategies.
For investors and market observers, the implications are twofold: the technology could disrupt traditional trading models, and the company's compliance framework may serve as a template for other fintech firms. As AI continues to evolve, the ability to harness collective trader behavior could become a cornerstone of retail trading platforms. The full press release is available at https://ibn.fm/uZs4s, and the latest news and updates relating to PDC are available in the company's newsroom at https://ibn.fm/PDC.
