"Backtesting a Trading Strategy on TradingView: Entry, Stop-Loss
This chart represents a backtesting setup for a trading strategy on TradingView for the US100 (Nasdaq 100) index on a 1-hour timeframe.
Key Observations:
Price Structure:
The chart displays a zigzag wave pattern, which resembles market structure movements in an uptrend.
There are clear higher highs (HH) and higher lows (HL), indicating a bullish trend.
Entry & Stop-Loss Strategy:
Entry Level: Marked in blue around 19,109.3.
Stop-Loss: Positioned underneath the previous low at approximately 19,030.4, marked in red.
This strategy suggests buying on a retracement after a pullback, which aligns with a classic trend-following approach.
Target Profit Zone:
The green line at the top represents a potential profit-taking area, aligning with a previous swing high.
Volume Indicator:
Volume is 6.33K, which suggests moderate trading activity.
The red bar on the left indicates a possible sell-off before price recovery.
Trading Strategy Insights:
Bullish Bias: The setup is designed for long trades, capitalizing on higher highs and higher lows.
Risk-Reward Ratio: A stop-loss below the previous low ensures risk management, while the take-profit level aims for a favorable risk-to-reward ratio.
Backtesting Focus: This setup helps traders evaluate performance over historical price movements before applying it in real markets.
Corrections:
The text contains typos:
“How to backtest a tarding startegy” → Should be "How to backtest a trading strategy".
“Stop-loss (underneath previous low)” is correctly labeled, but formatting could be improved for readability
Key Observations:
Price Structure:
The chart displays a zigzag wave pattern, which resembles market structure movements in an uptrend.
There are clear higher highs (HH) and higher lows (HL), indicating a bullish trend.
Entry & Stop-Loss Strategy:
Entry Level: Marked in blue around 19,109.3.
Stop-Loss: Positioned underneath the previous low at approximately 19,030.4, marked in red.
This strategy suggests buying on a retracement after a pullback, which aligns with a classic trend-following approach.
Target Profit Zone:
The green line at the top represents a potential profit-taking area, aligning with a previous swing high.
Volume Indicator:
Volume is 6.33K, which suggests moderate trading activity.
The red bar on the left indicates a possible sell-off before price recovery.
Trading Strategy Insights:
Bullish Bias: The setup is designed for long trades, capitalizing on higher highs and higher lows.
Risk-Reward Ratio: A stop-loss below the previous low ensures risk management, while the take-profit level aims for a favorable risk-to-reward ratio.
Backtesting Focus: This setup helps traders evaluate performance over historical price movements before applying it in real markets.
Corrections:
The text contains typos:
“How to backtest a tarding startegy” → Should be "How to backtest a trading strategy".
“Stop-loss (underneath previous low)” is correctly labeled, but formatting could be improved for readability
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
join telegram channel free..
t.me/forex_signal_dollarsman
Forex Gold & Crypto signals with detailed analysis & get consistent results..
t.me/forex_signal_dollarsman
Forex Gold & Crypto signals with detailed analysis & get consistent results..
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.