The Ultimate Backtest - Fontiramisu█ OVERVIEW
The Ultimate Backtest allows you to create an infinite number of trading strategies and backtest them easily and quickly.
You can leverage the trading setup you created with the tradingview's real-time alert system.
The tool is constantly being improved to accommodate more in-house indicators in order to imagine more trading strategies.
█ HOW IT WORKS.
The tool is divided into 3 main parts:
1. The indicators:
These are the indicators that you will be able to set up to create your setups.
Example: rsi, exponential moving average, home made resistance/support indicator etc.
We are working to add more and more in-house indicators to multiply the trading strategies.
2. The entry/exit strategy:
The entry/exit trades management is a central point of the strategy.
Here we propose several ways to take profits and in-house optimizations to enter a position.
3. The setup: the combination of indicators
Here it is up to you to create your own recipe.
You combine the different indicators set up above to make a real strategy.
Example: RSI Divergence + Location on a support.
Let's look at this in more detail.
Below is a description of all sections
█ 1. THE INDICATORS
TREND: MA (moving average) -->
Set up a moving average from multiple methods (sma, ema, smma...) of the type and length you want.
> A long is taken if the price is above the MA.
> A short is taken if the price comes below the MA.
You can set up a smoothing MA from the existing moving average and use it in the same way.
ENVELOPE: SUPER TREND -->
The supertrend is a trend following indicator. It clearly describes the distinction between downtrends and uptrends with a red or green direction. It is calculated according to the ATR and a factor.
> A long is taken when the direction is green and the price touches the supertrend support line.
> A short is taken when the direction is red and the price touches the supertrend resistance line.
ENVELOPE: BOLLINGER BAND -->
Bollinger bands are used to evaluate the volatility and probable evolution of prices, here we exploit the envelope
> A long is taken if the price crosses the lower band.
> A short is taken if the price crosses the upper band.
CLOUD: ICHIMOKU -->
The Ichimoku cloud aims to identify the direction and reversal points of dominant market trends. It displays support and resistance levels.
> A long is taken when the price enters the green ichimoku cloud.
> A short is taken when the price enters the red ichimoku cloud.
MOMENTUM: MACD ZERO LAG / MACD / RSI -->
RSI (Relative Strength Index) reflects the relative strength of upward movements, compared to downward movements.
MACD (Moving Average Convergence Divergence) is a momentum indicator that follows the trend and shows the correlation between two moving averages of the asset price.
MACD ZERO LAG is calculated in the same way except that the exponential moving averages that make up the calculation do not lag.
> A long is taken on a potential bullish divergence.
> A short is taken on a potential bearish divergence.
For now, with these indicators, we only take a trade based on divergences but we will add overbuy/oversell etc.
MOMENTUM: MA SLOPE -->
This house indicator allows you to use the slope of a moving average as a measure of momentum.
Define the length of the moving average whose slope we will take.
We then take a fast ma of the slope then a slow ma (You define the lengths with the parameters)
The tool foresees a subtraction between the slow and fast ma to have another interpretation of the slope.
This indicator is available and can be viewed freely on my tradingview profile.
> A long is taken when there is a potential bullish divergence on the fast/slow MA or the difference.
> A short is taken when there is a potential bear divergence on the fast/slow MA or the difference.
RESISTANCE: R/S FONTIRAMISU -->
An in-house indicator that shows resistances and supports according to the chosen parameters.
Indicator available and can be viewed freely on my tradingview profile.
> A long is taken when the price arrives on a support.
> A short is taken when the price arrives on a resistance.
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MOMENTUM DIVERGENCE -->
Section used to set the divergence detection.
The first field allows you to select which momentum you want to calculate the divergence on.
PIVOT DETECTION -->
Used to calculate top and dip on the chart, it is used with divergences/resistances/enter-exit optimizations....
Default parameters are: Deviation: 2.5, Depth: 10.
█ 2. STRATEGY FOR ENTERING/EXITING TRADES.
STRATEGY: TP/SL -->
Enter/Exit Trade Mode" field: The first field allows you to choose between two modes:
1. TP/SL Mode:
This mode allows you to take entries with take profits that you define afterwards with the TP1 and TP2 parameters .
> The stop loss is calculated automatically by taking the last dip if it is a long and the last top if it is a short.
> You can add a "Stop Loss % Offset" which will increase the size of the stop loss by the % value you set.
> If you activate TP2, the profit taking is split between TP1 and TP2, you can select the percentage of profit taking split between TP1 and TP2 via the "Percent Exit Profit TP1" field.
> The "TPX Multiplier" fields allow you to define the desired Risk Reward, if = 1 then RR = 1/1.
> A Trailing stop option is available, if active then the profit take will be split between TP1 and Trailing stop.
For the moment you can choose between the two MA's set up above to serve as trailing stop:
> In long, if the price goes below the MA then you take the profit (or the loss)
> In short, if the price goes above the MA then you take the profit (or the loss)
2. ONLY BUY/SELL:
Here the take profits are not taken into account, we only have an alternation between the long and the shorts.
The trailing stop applies to this mode and can be interesting depending on the use.
STRATEGY: SETUP OPTIMIZER (FP) -->
Here we have 3 home made optimization tools to take more relevant trades.
1. FAVORABLE ENTRY FROM PIVOT.
Here the tool will favor entries with interesting locations depending on dips and tops before.
A red cross with "FP" will appear on the chart each time a trade does not meet this condition.
2.STOP LOSS MAX (SL).
Will only take trades where the stop loss is maximum at X%.
A red cross with "%SL" will appear on the chart each time a trade does not meet this condition.
3. MOVE ALREADY TRADED.
Will not take several trades in the same move.
This can avoid cascading losing trades on some setups.
A red cross with "MT" will appear on the chart each time a trade does not meet this condition.
█ 3. THE SETUP: THE COMBINATION OF INDICATORS
Here, let your creativity speak.
You are free to assemble the indicators in the following way:
The conditions defined inside a group (group1/group2/group3) are combined to each other via an OR operator .
Example, if "cond01 = Momentum DIv" and "cond02 = Res/Sup Location", then trades will be triggered if one of the two conditions is met.
The conditions defined between several groups are multiplied via the AND operator .
Example, if "cond01 = Momentum DIv" and "cond12 = Res/Sup Location", then trades are taken if both conditions are met at the same time.
ALL CONDITIONS:
> NONE
No conditions selected.
> Momentum Div
Triggers when a potential divergence occurs on the selected momentum (in the divergence section).
> Momentum Div UT Sup
Triggers when a potential divergence occurs on the selected momentum (in the divergence section) in the upper timeframe.
The upper timeframe of the momentum is calculated directly in the code by multiplying the set parameters by 4 (fastlenght/slowlenght...).
> Multi MA
It is set in the "Trend: MA" section and is triggered by the conditions mentioned in the "INDICATORS" section.
> Smooting MA
Is set in the "Trend: MA" section and is triggered by the conditions mentioned in the "INDICATORS" section.
> Super Trend Env
Is set in the "ENVELOPE: SUPER TREND" section and is triggered by the conditions mentioned in the "INDICATORS" section.
> BB Env
It is set in the "ENVELOPE: BOLLINGER BAND" section and is triggered by the conditions mentioned in the "INDICATORS" section.
> Ichimoku Cloud
Is set in the "CLOUD: ICHIMOKU" section and is triggered by the conditions mentioned in the "INDICATORS" section.
> Res/Sup Location
Is set in the "RESISTANCE: R/S" section and is triggered by the conditions mentioned in the "INDICATORS" section.
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