S&D Backtester: Backtesting Parameters
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This article covers the basic parameters that will affect the backtesting results you get when using the S&D Backtester.
Backtesting Parameters
The S&D Backtester uses the following default backtesting properties:
Initial Capital
Starting capital of the backtest
By default: 100,000
Base Currency
Currency used in calculations and backtest results. If ‘Default’ is selected, the ticker’s currency is used
By default: Default
Order Size
The number of contracts/shares/lots/units per trade, or the amount in base currency, or a percentage of available equity.
By default: 1 Contract
Pyramiding
The number of successive entries allowed in the same direction.
By default: 1
Please note if you change the pyramiding value, you must also update the pyramiding input under the ‘Inputs’ tab in the S&D Backtester settings.
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Commission
Fees paid for each entry and exit.
By default: 0%
Slippage
The number of ticks to be added to the fill price of market or stop orders.
By default: 0 Ticks
Margin for Long Positions
The percentage of equity required to fund long positions
By default: 0%
Margin for Short Positions
The percentage of equity required to fund short positions
By default: 0%
Backtesting Window
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The Backtesting Window allows users to choose the starting and end dates for backtests. If the Backtesting Window is disabled, all available data will be used for backtests. This is usually ~10,000 bars back.
When Deep Backtesting is enabled, this is around 100,000 bars.
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Important Notes
TradingView has limitations when running advanced backtests, resulting in the following restrictions:
Computation Errors
The computation of using MTF features and viewing several tickers is very intensive on TradingView. This can sometimes cause calculation timeouts. When this occurs, simply force the recalculation by modifying one indicator’s settings or by removing the S&D Backtester and adding it to your chart again.
Disclaimer
Backtests do not guarantee future performance. Testing strategies on synthetic data may produce misleading results that do not accurately reflect a strategy's effectiveness. For reliable insights, backtesting should be conducted using real closing price data. Learn more here.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.