Introduction
Forex trading is one of the most popular methods of speculating on the financial markets and due to its federation on liquidity and leverage makes it relatively easy to start trading and generate a substantial income. However in order to be successful in Forex trading, it is important for an individual to understand the principles and strategies which go into trading and to test them using TradingView’s Strategy Tester. This tool can be used to test one’s strategy before trading with real money and is a key part of creating a sustainable trading strategy. Despite its usefulness, there is one issue which can be confusing for new traders- why does the Strategy Tester only buy and sell 1 contract no matter what settings they change? This article will explain why the Strategy Tester’s settings do not affect orders and how the to best approach using the Strategy Tester in the most effective manner.
The Basics of TradingView Strategy Tester
The Features of the Strategy Tester
The Strategy Tester allows traders to test a strategy and compare the results against their peers, all with the single aim of making consistent profits. The Strategy Tester has a range of features which allow traders to explore their strategy, change parameters and backtest it against different markets. The most useful features of the Strategy Tester are the ability to adjust the ‘Order Size’, which is the number of contracts purchased / sold with each trade, and the ‘Initial Capital’, the base amount of money with which you simulate trading (which determines your position size relative to the total equity).
Why Does Tester Only Buy 1 Contract?
Despite the fact the Strategy Tester has the ability to adjust the Order Size, the Strategy Tester only executes trades in multiples of 1 contract. In other words, no matter what Order Size you set, the Strategy Tester will buy/sell 1 contract per trade. This is because the Strategy Tester does not recognize the user settings for contracts, for example a user might set 10 contracts but the Strategy Tester will only execute 1 contract at a time. This happens because the Strategy Tester executes orders based on the prices that are listed on the markets screen and not on the user’s settings.
How To Best Use The Tester
Despite the limitation of the Strategy Tester regarding contracts, the Strategy Tester still provides great value to traders who use it correctly. The Strategy Tester is best used to develop a consistent trading strategy. To do so, traders should focus on minimizing losses, maximizing gains and understanding which market conditions their strategy works best in. The Strategy Tester should also be used to familiarize oneself with the markets and the associated software and it can be helpful to use the Strategy Tester to run several back tests with different strategies to gain a better understanding of how the market behaves.
Conclusion
The TradingView Strategy Tester is an incredibly useful tool for traders to develop and refine their trading strategies. Despite its usefulness, some traders find themselves confused by its limitations, in particular why it only buys and sells 1 contract no matter what the Order Size is set to. This article has explained why this is and how to best use the Strategy Tester. In sum, the Strategy Tester should be used to develop, refine and familiarize oneself with a strategy and market conditions.
Why Does TradingView Strategy Tester Only Buy One Contract No Matter What Changes?
The TradingView platform is widely used by traders and investors to analyze the markets and develop their own trading strategies. One of the most popular features is the Strategy Backtester, which can be used to test potential strategies before they are used in live trading. Unfortunately, the Strategy Backtester has a major bug, which is that regardless of what parameters are set, the backtester will only buy one contract. This can cause major problems for traders who are trying to develop more complex strategies, and make it difficult to test strategies accurately.
How Does the TradingView Strategy Backtester Work?
The TradingView Strategy Backtester allows traders to test their strategies using historical data. It simulates real-time trading conditions, including placing orders, and it automatically closes out any positions that meet the chosen conditions. Traders can choose to enter and exit positions based on various criteria, such as the Moving Average crossing a certain level, or the Relative Strength Index reaching a certain level.
Why Does the Strategy Backtester Only Buy One Contract?
The main reason why the Strategy Backtester only buys one contract is because of a limitation in the data available. The data is not granular enough for the backtester to accurately model more complex strategies. This means that regardless of the parameters that are set, the backtester will always only buy one contract.
What Can I Do to Work Around This Bug?
The best way to work around this bug is to be aware of it and to set realistic expectations when using the Strategy Backtester. The fact that it only buys one contract can be used to your advantage when developing strategies, as it can help to identify potential trading opportunities in the market. Additionally, it is important to factor in spreads and commissions when using the backtester, as these can significantly affect the profitability of a trading strategy.
Are There Any Alternatives to the TradingView Strategy Backtester?
There are a number of alternative backtesters available, including MetaTrader 4 and NinjaTrader. These backtesters are more advanced than the TradingView one, and they are able to better model more complex strategies. However, they are not free to use, so traders may need to factor in additional costs when deciding which backtester is best for them. Additionally, most of these alternatives require a dedicated computer with adequate processing power.
Conclusion
The TradingView Strategy Backtester is a popular tool for traders, but it has a major bug which limits its usefulness. The backtester is only able to buy one contract, regardless of what parameters are set. While this bug can be worked around, it is important to factor in spreads and commissions when using the backtester, and to set realistic expectations. There are other backtesting tools available, but they tend to be more expensive and require more processing power.
