Backtest trading strategy performance summary

Trading Systems Expert Advisors and Automated Trading
1

Hi! I have my strategy coded in pinescript (tradingview) and backtested.

However I don´t understand the performance summary…

Total trades: 49
Percent profitable: 44,9

So this means: 22 winners (49/100 x 44,9 = 22) and 27 losers. Do I understand this correctly?

For this strategy I use a fixed RR 1:2 and a risk of 1% (capital: $10.000)

Then the profit will be: 22 (winners) x 2R = 44R -27 (losers) = 15R!

Again: do I understand this correctly?

And what does this net profit mean (= the overall profit achieved)? 0,31 USD :face_with_monocle: ?

performance summary
performance summary1601×864 101 KB

2

Yes, your win rate of 44.9% means out of 49 trades you have 22 winners and 27 losers.

The 22 winners at a r:r of 1:2 and a capital risked of 1%, means your winners make you +44%.
The 27 losers cost you -27%.
The net gain is 44 - 27 = +17%, meaning your account capital should now be the starting amount plus 17%.

1 Like
3

Thanks!

Just discovered some people saying the backtest of Tradingview is terrible :thinking:. But I think the best method of testing is going live. So I will try with very, very, very… small position size(s)