AVA Backtest
[AlgoFuego]

Apply AVA Backtest to any TradingView chart from the Invite-Only Scripts section after subscribing. The indicator works on every asset and timeframe without additional configuration to get started. Under AVA Settings, adjust Sensitivity to control how reactive the trend line is to volatility shifts — start with the default and modify after observing behavior on your target market. Set the smoothing Length to match your trading timeframe: shorter for scalping, longer for swing or position strategies.

Watch the AVA trend line color change between Up (bullish) and Down (bearish) states. A flip from Down to Up is a potential Long signal; a flip from Up to Down is a potential Short signal. The exponential volatility filter suppresses false flips in choppy conditions — only sustained candle structure changes trigger direction changes. Observe the historical flip sequence on your chart before configuring the backtesting engine to understand the signal frequency and character on your specific instrument.

Choose Long or Short depending on the directional hypothesis you want to test. Then select your entry trigger: AVA Signal mode opens a trade whenever the AVA line flips direction — reacting to internal trend changes. AVA Cross mode opens a trade when price crosses over or under the AVA line — reacting to price interacting with the trend structure. Test both on your market and compare the resulting win rates and average returns in the performance table.

Set exit logic independently from entry logic. Signal exit closes the trade when the AVA line flips against the position. Cross exit closes when price crosses back through the AVA line. Bar Count exit closes after a fixed number of bars regardless of signal state — ideal for testing time-limited holding periods. You can combine these with optional entry and exit filters to reduce false signals during flat or low-volatility market phases.

Enable stop-loss and take-profit and define their percentage distances from each trade's entry price. These act as protective boundaries — capping downside and locking in profits independently of the exit trigger logic. Begin with wider stops (10–15%) during initial research to avoid excessive exits distorting the signal statistics. Enable commission simulation and enter your actual broker's entry and exit fee percentages to generate realistic, cost-adjusted performance metrics.

Turn on Trade Levels display to plot entry, stop-loss, and take-profit lines directly on the chart for every simulated trade. Enable dynamic candle coloring to distinguish Long trades (bullish color), Short trades (bearish color), and neutral flat periods at a glance. These visualizations allow immediate assessment of how each trade unfolded against the price action — revealing whether the AVA signal captured meaningful moves or produced false entries during the backtesting period.

Analyze the on-chart statistics panel: total trades, win rate, maximum, minimum, and average returns per trade, and compound equity growth across the full simulated history. Iterate systematically — adjust AVA Sensitivity and Length, compare Signal vs Cross entry modes, test Long vs Short, and evaluate bar count exit lengths. Document which combinations produce the highest win rates and compound returns on your specific market before committing capital to live signals.

Once your backtested configuration produces consistent, statistically meaningful results, activate the alerts for the events you need to monitor: Entry for new signal notifications, Exit for position close, Stop-Loss and Take-Profit for automated level monitoring. Each alert type is independently toggleable. Receive push notifications on mobile or email through TradingView's alert system so you never miss a signal, even when away from the chart.