Strategy Tester and components breakdown

What is Strategy tester in TradingView?

The Strategy Tester in TradingView is a tool that allows traders to evaluate the effectiveness of their trading strategies by simulating their performance on historical data. Using the Strategy Tester, traders can backtest their strategies using a wide range of parameters, including different markets, timeframes, and technical indicators. The tool provides detailed performance reports that allow traders to evaluate the profitability, risk, and consistency of their strategies, and to identify areas for improvement. By analyzing the results of backtesting with the Strategy Tester, traders can gain valuable insights into the performance of their strategies and make more informed decisions when it comes to live trading. The Strategy Tester is an essential tool for any trader who wants to develop and refine their trading strategies and improve their chances of success in the markets.

Please note that the Strategy Tester only works with indicators that are compatible with strategy versions, which include the ability to backtest results. Indicators without the backtesting feature cannot be evaluated using the Strategy Tester. Indicators that are compatible with strategy testing can be recognized by the following symbol:

Components breakdown

To open the Strategy Tester in TradingView, first ensure that a strategy technical indicator has been added to the chart. Without a strategy indicator, the Strategy Tester cannot be accessed. Once a strategy indicator has been added to the chart, maximize the chart panel by clicking on the maximize button located in the bottom right corner of the chart. On the top of the screen, you will see a tab labeled "Strategy Tester". Click on this tab to open the Strategy Tester.

Once the Strategy Tester is open, you will see four tabs at the top of the window: "Overview", "Performance Summary", "List of Trades", and "Properties".

• The Overview tab provides a summary of the backtesting parameters, including the instrument, timeframe, strategy, and testing period.

• The Performance Summary tab provides a detailed breakdown of the strategy's performance metrics, including profit and loss, win rate, maximum drawdown and avg trade.

• The List of Trades tab provides a detailed record of each trade executed by the strategy during the backtesting period. This tab includes information such as the entry and exit times, entry and exit prices, profit or loss, and other relevant data. Traders can use this tab to analyze the individual trades executed by the strategy and identify patterns or areas for improvement.

• Finally, the Properties tab provides a range of settings and parameters that traders can adjust to customize the backtesting process. This tab allows traders to specify the testing period, instrument, timeframe, strategy parameters, and other variables.

By understanding the different tabs and features of the Strategy Tester in TradingView, traders can gain valuable insights into the performance of their trading strategies and make more informed decisions when it comes to live trading.

Graphic example of the Strategy Tester:

There are two primary ways to utilize the backtesting system on our trading platform: the Settings Menu and the Deep Backtesting System.

a) Settings Menu: This method allows you to select a specific date range for backtesting from the settings menu of the indicator. However, it's important to note that the period of the study is subject to the maximum number of labels that can be displayed on the chart. Regardless of the date range set, the analysis will be restricted to the maximum label limit.

If you use this method of backtesting, the overview page of the strategy won't display the exact start and end dates of the testing period. Consequently, the overview lacks specific timestamps, as seen in the example below:

b) Deep Backtesting System: This feature enables you to delve into a much larger pool of data for backtesting purposes, surpassing the limitation of label numbers on the chart. This is an excellent option when you need a broader data set to validate the performance of a particular trading strategy over a more extended period, as seen in the example below:

In summary, when you see specific dates displayed in our analysis, it signifies the use of the Deep Backtesting feature. In other cases, where dates aren't explicitly mentioned, we've relied on the standard settings panel within the indicator's menu. Both methods have their unique strengths and are used appropriately in our strategic evaluation.

Please remember, as per the current Tradingview subscription tiers, the 'Deep Backtest' feature is available only for Premium subscribers. Be sure to verify this information on the official Tradingview website or with their customer support to keep up with any updates or changes.