Backtesting on TradingViewBased on the massive feedback from our previous article about backtesting we decided to make a follow up on how to backtest your strategy.
Every trader talks about strategy.
Few actually test it.
Backtesting is where ideas meet data — and TradingView makes it surprisingly simple.
Whether you code your own system or use built-in tools, backtesting shows you how your logic performs before you risk a single dollar.
1. Open the Strategy Tester
Start by opening the chart of the asset you want to test.
Click “Strategy Tester” at the bottom of the screen.
This activates TradingView’s built-in engine that simulates your system’s historical trades automatically.
You’ll see three tabs appear:
Overview: a summary of your results.
Performance Summary: key stats like profit, drawdown, and win rate.
List of Trades: every single historical trade your strategy executed.
2. Load or Create a Strategy
Go to the Indicators & Strategies tab.
TradingView separates indicators from strategies — only strategies can trigger trades for backtesting!
You have two options:
Use a built-in or public strategy: like “MACD Strategy” or “Moving Average Crossover.”
Paste your own Pine Script strategy: under “Pine Editor,” then click “Add to Chart.”
Once applied, TradingView automatically calculates historical trades based on your logic.
Tip: Indicators are for signals, strategies are for testing execution.
3. Adjust the Test Parameters
To make your test realistic, click the ⚙️ icon next to your strategy name.
In the Properties tab, you can define:
Initial capital (e.g. $10,000)
Position size (fixed or percent-based)
Commission and slippage
Pyramiding (how many positions can stack)
Then set your date range in the Strategy Tester — for example, test from 01-01-2022 to 01-01-2024.
The goal is to simulate what your system would have done under real conditions.
4. Analyze the Results
Once the test runs, TradingView gives you a detailed breakdown:
Net Profit (%) — your total gain or loss.
Max Drawdown — your biggest loss from peak to trough.
Win Rate & Profit Factor — how often you win and how much you win versus lose.
Average Trade — the mean result per trade.
Equity Curve — how your balance evolved over time.
Scroll through the List of Trades to see how each entry and exit behaved.
If you spot clusters of losses, note the pattern — that’s where improvements start.
This is the part where you analyze and think why did a trade fail and how can I avoid it.
TradingView also enables you to export data in excel so its super easy to analyze and look for improvement.
5. Refine and Forward-Test
Once you’ve seen how your system performs historically, make small adjustments.
Change one parameter at a time — like EMA length, RSI threshold, or stop-loss distance — and rerun the test.
When you find consistent results across timeframes or markets, move to paper trading mode.
Forward-testing confirms your backtest logic under real conditions, including live volatility and execution timing.
If your live and backtested results align closely, you’ve built something solid and you are ready to make money.
A big tip here, even a small thing such as a change in stop loss or timeframe change from 15 minutes to 14 minutes can make a huge difference so try out different conditions.
