Risk to Reward - FIXED SL BacktesterDon't know how to code? No problem! TradingView is an excellent platform for you. ✅ ✅
If you have an indicator that you want to backtest using a risk-to-reward ratio or fixed take profit/stop loss levels, then the Risk to Reward - FIXED SL Backtester script is the perfect solution for you.
introducing Risk to Reward - FIXED SL Backtester Script which will allow you to test any indicator / Signal with RR or Fixed SL system
How does it work ?!
Once you connect the script to your indicator, it will analyze your entry points and perform calculations based on them. It will then open trades for you according to the specified inputs in the script settings.
HOW TO CONNECT IT to your indicator?
simply open your indicator code and add the below line of code to it
plot(Signal ? 100 : 0,"Signal",display = display.data_window)
Replace Signal with the long condition from your own indicator. You can also modify the value 100 to any number you prefer. After that, open the settings.
Once the script is connected to your indicator, you can choose from two options:
Risk To Reward Ratio System
Fixed TP/ SL System
🔸if you select the Risk to Reward System ⤵️
The Risk-to-Reward System requires the calculation of a stop loss. That's why I have included three different types of stop-loss calculations for you to choose from:
ATR Based SL
Pivot Low SL
VWAP Based SL
Your stop loss and take profit levels will be automatically calculated based on the selected stop loss method and your risk-to-reward ratio.
You can also adjust their values to match your desired risk level. The trades will be displayed on the chart.
with the ability to change their values to match your risk.
once this is done, trades will be displayed on the chart
🔸if you select the Fixed system ⤵️
You have 2 inputs, which are FIXED TP & Fixed SL
input the values you want, and trades will be on your chart...
I have also added a Breakeven feature for you.
with this Breakeven feature the trade will not just move SL to Entry ?! NO NO, it will place it above entry by a % you input yourself, so you always win! 🚀
Here is an example
Enjoy, and have fun, if you have any questions do not hesitate to ask
Breakeven
Breakeven Line DemoPlug the breakeven line code into the bottom of your strategy to get visualization of your breakeven price. Line is green when net position is long, red when net short and invisible when strategy is risk neutral. Most useful for strategies which use pyramiding (successive entries in same direction stacked upon each other) as it can be difficult to track where prices needs to return to to allow closing in profit. Disclaimer: the strategy logic is garbage do not use it. It is only there so you can see how Breakeven Line logic is implemented.
Plot Break-even PriceThis indicator simply plots your entry price and the break-even point (green line). Area between the entry price and the break-even point will “eat” you profit by exchange fees. You can use the green line to lock your break-even point. I do not recommend using this strategy for trading, because the entry logic is based on SMA crosses. However, this script could be used within you own strategy to plot the break-even point.
For example, there is 0.1% Maker fee and 0.1% Taker fee at Binance spot exchange. You need to sum up those two fees to calculate the break-even point. Every exit above/below the green line will guarantee a profit (in our case it means 0.2% above the entry price for long position and 0.2% below the entry price for short position).
