RSI TRADING STRATEGY BACKTESTING FRAMEWORK
USER-GUIDE
Assumnig you've already subscribed / have access to program :-
RSI STRATEGY BACKTESTING FRAMEWORK
Once you have made the payment, the Indicator access should reflect under your Tradingview's Indicator Library -> Invite Only Section
(in around 24 hrs)
Following are the Parameters Available for your backtesting
Configuring Entry Rules
Simply select your preferred condition from the Buy Rule and Sell Rule dropdown menus inside the settings panel.
Above / Below Level
This condition checks whether the current RSI value is positioned relative to a user-defined level.
You can define:
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“X Level” → Used for Buy rules
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“Y Level” → Used for Sell rules
Above Level:
Triggers when the current RSI value is greater than the selected level.
Below Level:
Triggers when the current RSI value is lower than the selected level.
Example:
If Buy Rule = Above 30
A long trade will trigger whenever RSI is above 30.
This condition is continuous — meaning it stays valid as long as RSI remains above or below the selected level.
Custom Start-End Period
Crossover / Crossunder
This condition detects a transition — not just position.
A “Cross” occurs when the RSI moves from one side of a level to the other, compared to its previous candle value.
Crossover:
Triggers when RSI moves from below a level to above it.
Example:
If RSI was 28 and moves to 31 with level set at 30, a crossover is triggered.
Crossunder:
Triggers when RSI moves from above a level to below it.
Example:
If RSI was 72 and moves to 68 with level set at 70, a crossunder is triggered.
Unlike Above/Below, cross conditions trigger only once at the moment of transition.
Test your strategy exactly where it matters most. With a custom backtesting period, you can choose the exact start and end dates for performance evaluation—whether you want to analyze specific market conditions, avoid irrelevant historical data, or focus on recent behavior. This feature gives you precise control and clearer insights into how your strategy performs during the periods that are most important to you.
Intraday Exit - Time Set
If you need to close any open position before market closes instead of 'carrying forward' to next day,
you can use this feature, by entering the desired candle's 'Open Time' in the inputs.
The program will make sure to exit any open trades at that very candle with matching 'Time' (as entered in inputs) resulting in 'Intraday Format' Exits
Long only / Short only
Gain full directional control over your strategy by choosing to trade only long positions, only short positions, or both. This feature is especially useful for markets with directional bias or for testing how your strategy performs in bullish versus bearish conditions. It helps isolate performance, reduce unwanted trades, and fine-tune your strategy to specific market environments.
Risk Reward Exit
You get upto chose from 5 different Risk-Reward Models to backtest your trading strategy.
Each one has its own Pros and Cons. So the selection also depends on your overall strategy type, Symbol and timeframe selected, risk tolerance and related parameters.
POINTS BASED RR
When you select 'Points' from the dropdown 'Risk-Reward Type, the relative setting gets applied to the following input fields - Stoploss and Target Profit.
When you want to define a fixed amount of profit in terms of 'Points' (absolute value) this mode can be used.
Let's say you are trading 'NSE:RELIANCE'
You enter a trade at INR 100, and enter stoploss value at '50' and 'Target Profit' as '100'
the Stoploss level will be set at '50' and 'Take-Profit' level will be set at '150'
So, the value you input for 'Points' is the absolute profit value.
Pips Based R:R
When you select Risk-Reward Type → “Pips”,
your Stop Loss and Target Profit are calculated in pips distance from entry price, instead of percent or points.
This mode is especially useful for:
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Forex traders
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Fixed-pip scalping strategies
-
Structured intraday systems
​
Let’s assume:
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You are trading EURUSD
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Current price = 1.1000
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You select:
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Risk-Reward Type → Pips
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Stop Loss → 20
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Target Profit → 40
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​
If entry happens at:
1.1000
Then the system automatically calculates:
Stop Loss = 20 pips below entry
→ 1.0980
Target Profit = 40 pips above entry
→ 1.1040
So your R:R becomes:
1 : 2
​
Some pairs 'Pips Values' are quoted differently. So Kindly Cross check with symbols details before using this mode.
Ticks Based R:R
A tick is the smallest price movement allowed for a symbol.
​
For example:
-
If a symbol’s minimum tick size is 0.25,
then 1 tick = 0.25 price movement.
Let’s assume:
You are trading an instrument where:
Minimum Tick Size = 0.25
(Current price = 2000.00)
You select:
Risk-Reward Type → Ticks
Stop Loss → 10
Target Profit → 20
​
If entry happens at:
2000.00
Stop Loss = 10 ticks below entry
10 × 0.25 = 2.50 points
SL = 1997.50
Target Profit = 20 ticks above entry
20 × 0.25 = 5.00 points
TP = 2005.00
Risk-Reward = 1 : 2
Percent % based R:R
This means your risk automatically adjusts relative to price — instead of using fixed pips, ticks, or points.
Let’s assume:
Current price = 100
You select:
Risk-Reward Type → Percent %
Stop Loss → 1
Target Profit → 2
Important:
When using Percent mode, you enter plain percentage numbers (not decimals).
​
​
If entry happens at:
100
Stop Loss = 1% below entry
1% of 100 = 1
SL = 99
Target Profit = 2% above entry
2% of 100 = 2
TP = 102
Your R:R becomes:
1 : 2
ATR Based R:R
When you select Risk-Reward Type → “ATR Times”,
your Stop Loss and Target Profit are calculated using the Average True Range (ATR).
ATR measures market volatility.
Instead of using fixed pips, ticks, or percentages, your SL and TP adjust dynamically based on how volatile the market is.
​
ATR shows the average price movement over a selected period.
Example:
If ATR (14) = 10
It means the market is moving approximately 10 points per candle (on average).
So if you choose:
Stop Loss = 1 ATR
Target Profit = 2 ATR
Your SL and TP will adjust based on current volatility.
​
​
Let’s assume:
ATR Period = 14
Current ATR value = 10
Entry price = 100
You select:
Risk-Reward Type → ATR Times
Stop Loss → 1
Target Profit → 2
​
Stop Loss = 1 × ATR
= 1 × 10
= 10 points
SL = 100 − 10 = 90
Target Profit = 2 × ATR
= 2 × 10
= 20 points
TP = 100 + 20 = 120
Risk-Reward = 1 : 2
Reversal Trades
Enable your strategy to instantly reverse direction when an opposite signal appears. Instead of waiting for a full exit, the system closes the current position and enters a new trade in the opposite direction. This helps capture sharp trend changes faster, reduces idle time, and ensures your strategy stays aligned with real-time market momentum.
Disclaimer :
These tools are designed to assist users in analyzing and evaluating trading strategies. They are not intended to generate direct buy or sell signals and should not be used as a signal-generating system. The developer is not responsible for any losses arising from the use of these tools, including but not limited to errors, limitations, or market conditions. Users are advised to seek guidance from a qualified market professional before making trading or investment decisions.