TradingView Trading Strategies – What Is It? (Backtest) – Quantified Strategies For Traders And Investors

Last Updated on February 5, 2023

TradingView is a financial platform that offers tools for traders to visualize market data, create and share technical analysis, and develop and backtest trading strategies. The platform offers a variety of tools including charting, indicators, drawing tools, and alerts. It allows you to access a large community of traders and analysts to share and learn strategies, analyze market trends, and make informed trading decisions. So, what are TradingView Trading Strategies?

A TradingView trading strategy refers to the use of the TradingView platform’s tools and functionalities to make trading a lot easier, more fun, and more profitable. These tools include custom-built indicators, community scripts, backtesting software, historical market data and chart on different assets trading on almost all the exchanges around the world, and other forms of technical analysis that can help you make informed trading decisions.

In this post, we take a look at Tradingview trading strategies. We end the article with a backtest.

Table of contents:

Tradingview Trading Strategies: Overview

TradingView is a popular trading platform that provides traders with a range of resources and tools for technical analysis and charting. One of the main advantages of using TradingView is that it helps traders to develop and implement successful trading strategies.

A TradingView trading strategy typically involves the use of the platform’s tools and features to spot potential trades and make informed decisions. This may include the use of chart patterns, custom scripts, community scripts, and technical indicators, as well as tracking community-generated ideas and analyzing market sentiments. There are also backtesting software and historical market data and charts.

One common TradingView trading strategy is the use of custom scripts to scan the market for specific technical setups and chart patterns. This enables traders to quickly identify high-probability trades and make informed decisions.

Another strategy is to follow the ideas and analysis generated by other traders in the community section. This can provide traders with new insights and perspectives, and help them to stay informed on market sentiments and trends.

Tips and Techniques for Tradingview Trading

The TradingView platform gives a lot of flexibility, allowing you to make the most of your trades. Here are some tips and techniques for TradingView trading:

Define your trading strategy: It is important to have a clearly defined strategy and plan that outlines your trade entries and exits. There should also be proper risk management strategies, including position sizing and the use of stop losses.
Use multiple timeframes: TradingView gives you the flexibility to view charts in multiple timeframes on the same screen, as well as other chart forms, such as Point & Figure Chart, Renko Chart, and so on. You can use these to analyze the price action, providing you with a more comprehensive view of market conditions and helping you identify important levels of support and resistance.
Utilize custom scripts: TradingView allows you to build custom scripts that can scan the markets for specific chart patterns and technical setups. This can help you cut the time of manually trying to identify them yourself and help you identify more high-probability trades more quickly.
Follow market sentiment: You can also utilize the market sentiment indicators, such as the number of bullish and bearish traders, to measure the overall mood of the market, which can help you to make informed decisions.
Stay up-to-date: You can also keep abreast of market news, events, and trends by following other traders and investors in the TradingView community. Additionally, you can set up notifications for specific symbols or indicators to ensure you never miss out on any important update.
Keep a trading journal: TradingView allows you to automatically keep records of your trades.Keeping a detailed record of your trades and the reasons behind them can help you evaluate your strategy and help you stay more organized and improve your performance over time.
Review your trades: Be sure to regularly review your trades and the outcomes to know how well your strategies are performing.
Share trade ideas: You can also build a community of followers on TradingView by posting your trade ideas and stance on the market by utilizing the platform’s posting feature.
Avoid over-trading: Be patient and avoid jumping into trades without proper analysis. Wait for high-probability setups and stick to your trading rules to avoid making impulsive or emotional trades.

How to Use Tradingview for Maximum Profits

To maximize profits when using TradingView, here are some key steps to follow:

Start by defining your trading goals and risk tolerance.
Study market trends, charts, and news to get a sense of market direction.
Use TradingView’s technical analysis tools, including charting and indicators, to perform multi-timeframe analysis.
Backtest your strategies to see how they would have performed in the past.
Join the TradingView community to learn from other traders and get new ideas.
Stay disciplined and stick to your plan, avoiding emotional or impulsive trades.
Continuously monitor and adjust your strategies as market conditions change.
Consider taking advantage of TradingView’s alerts to stay up-to-date on market movements and potential trading opportunities.

Remember, no trading strategy can guarantee profits, so always be prepared to manage risk and keep your losses small.

Strategies for Day Traders on Tradingview

TradingView offers a lot of trading opportunities for day traders. Here are some trading strategies that can be employed by day traders on TradingView:

Trend following: Day traders can catch short-term and long-term intraday trends in the market. Some of the tools available on TradingView for this type of strategy include trend lines, moving averages, alligator, Ichimoku clouds, and other technical indicators.
Breakout trading: This strategy involves buying or selling the break of a range or consolidation pattern. Day traders can use support and resistance levels, as well as chart patterns to identify these important levels. The TradingView community also has dedicated indicators for spotting specific chart patterns.
Scalping: This involves looking for quick trades with small price movements using technical indicators such as moving averages to identify short-term trends and make trading decisions.
Momentum trading: It involves identifying stocks with strong momentum and trading in the direction of the momentum. Day traders can use technical indicators, such as the Relative Strength Index (RSI), to identify overbought and oversold conditions and make trading decisions.

Advanced Strategies for Tradingview Traders

TradingView enables you to make use of different advanced strategies. Here are a few to consider:

Algorithmic trading: You can create custom scripts to automate trades based on specific technical or fundamental criteria. TradingView allows traders to create and use their own custom scripts, making it easier to execute algorithm trading strategies.
Mean reversion: You can also use the mean reversion strategy and look for stocks that have deviated from their historical price mean and trade in the direction of the mean reversion with the use of technical indicators such as Bollinger Bands, to identify these potential opportunities.
Statistical arbitrage: You can employ the use of statistical arbitrage, which involves finding pairs of assets that are highly correlated and profiting from price differences between the two. Typically, you will look for a pair of historically correlated securities that are now trading at a price different from their expected value and trade in a way that takes advantage of the spread.
Inter-market analysis: This strategy involves analyzing multiple markets, such as stocks, currencies, commodities, and bonds, to gain a broader understanding of market trends.

Benefits of Tradingview for Traders

Advanced charting: TradingView offers advanced charting tools, including over 100 technical indicators, advanced drawing tools, and customizable chart templates. This allows traders to perform detailed technical analyses and make informed trading decisions.
Real-time market data: TradingView provides real-time market data for a wide range of markets, including stocks, forex, cryptocurrencies, and commodities. This allows traders to stay up-to-date on market developments and make informed trading decisions.
Custom scripts: TradingView allows traders to create and use custom scripts, making it easier to automate trades based on specific technical or fundamental criteria.
Social network: TradingView is a social network for traders, allowing traders to share ideas and insights, connect with other traders, and collaborate on trading strategies.
Mobile app: Tradingview offers the flexibility of multi-platform usage. Its mobile app provides the same features as the web platform, allowing traders to stay connected to the market and trade from anywhere.
Economic calendar: Tradingviewhas an inbuilt economic calendar that highlights important market news and events, allowing traders to keep up with happenings without ever leaving the app.
Affordable: TradingView provides both free and paid plans, making it an affordable option for traders at all levels, from beginners to experts.

Tutorials for Tradingview Trading

TradingView offers a wide range of tutorials to help traders get started and improve their skills. Here are some key tutorials to consider:

Getting Started: This tutorial covers the basics of using TradingView, including how to create an account, navigate the platform, and customize your charts.
Technical Analysis: TradingView provides a comprehensive guide to technical analysis, including an overview of chart patterns, indicators, and oscillators.
Trading Strategies: TradingView offers a variety of tutorials on different trading strategies, including mean reversion, momentum trading, trend following, and statistical arbitrage.
Pine Script: TradingView’s Pine Script is a powerful tool for creating custom indicators and automated trading strategies. The platform offers tutorials on how to use Pine Script, including a beginner’s guide and a reference manual.
Backtesting: TradingView offers a backtesting tool that allows traders to test their strategies on historical market data. The platform provides tutorials on how to use the backtesting tool and how to interpret the results.
Alerts: TradingView’s alerts system allows traders to set custom alerts based on price, indicators, or other conditions. The platform offers tutorials on how to create and use alerts, including how to set up email and SMS notifications.
Community: TradingView has a large and active community of traders and analysts who share their insights and strategies. The platform offers tutorials on how to use the community to your advantage, including how to find useful information and how to participate in discussions.

Strategies for Swing Traders on Tradingview

Here are some of them:

Trend following: With this strategy, you identify the overall trend in the market and trade in the direction of that trend. You can use technical indicators such as moving averages, trend lines, and momentum indicators to identify the trend and confirm entry and exit points.
Breakout trading: This strategy can be used to look for stocks or markets that are trading in a range and trade a breakout in either direction. You can use indicators such as volume and momentum to confirm the validity of the breakout.
Reversal trading: Here, you look for potential reversal patterns, such as head and shoulders or double bottom patterns, and trade in the direction of the reversal.
Mean reversion: This involves betting on securities that are trading significantly away from their means to revert to their mean prices.
Sector rotation: With this strategy, you look for sectors that are outperforming the market and trade the strongest stocks within that sector.

Risk Management Strategies for Tradingview

Here are some of the ways to manage risks when trading with TradingView:

Position sizing: Determine the size of each trade based on your overall trading capital and the level of risk you are comfortable with. Never risk more than you are comfortable with on any single trade. The rule of thumb is to risk only 1-2% of your capital per trade.
Stop-loss orders: Use stop-loss orders to limit potential losses on each trade. Set your stop-loss at a level that is reasonable for the volatility of the market you are trading.
Diversification: Diversify your portfolio across multiple markets, including stocks, forex, and commodities. This can help reduce the overall risk of your portfolio.
Scaling your position: Use volatility management techniques, such as scaling in and out of positions or using options, to manage the volatility of your trades.
Be disciplined: Develop and maintain the psychological discipline to stick to your trading plan, even in the face of losing trades or volatile market conditions.
Review and evaluate past trades: Regularly review your trading performance and adapt your trading strategy as necessary. This can help you improve your overall risk management and increase the profitability of your trading.

Strategy Ideas for Tradingview Traders

You can create some trading strategies around the following ideas:

Support and resistance levels: These are key price levels where the market has struggled to break through in the past. You can create breakout or reversal strategies around those levels.
Chart patterns: Some chart patterns are reputed to offer reliable trade setups with profit targets. Creating trading strategies around chart patterns, including harmonic patterns, may be a good idea.
Candlestick patterns: These patterns have been used in the Japanese markets since the 18^th century AD. You can look for common patterns in price action, such as doji or hammer patterns, to identify potential trades.

What Tools Does Tradingview Offer for Traders?

Here are some of the tools:

Charting and technical analysis: TradingView offers a comprehensive charting platform with advanced technical analysis tools, including over 100 technical indicators, drawing tools, and the ability to create custom scripts.

Community insights and ideas: TradingView has a large community of traders who share their insights, ideas, and charts. Traders can follow other traders, comment on their ideas, and engage in discussion to improve their own trading strategies.

Real-time market data: TradingView provides real-time market data for a wide range of markets, including stocks, forex, futures, options, and cryptocurrencies.

Alerts and notifications: TradingView provides alerts and notifications for various events, including price changes, technical indicators, and custom scripts.

Customizable workspaces: TradingView allows traders to create and customize their own workspaces, including the layout and tools they use for their analysis and trading.

Backtesting software: TradingView offers backtesting and simulation tools to help traders test and refine their trading strategies.

Mobile app: TradingView also offers a mobile app for iOS and Android, allowing traders to access their charts and trading ideas on the go.

How to Make the Most of Tradingview

To make the most of TradingView, make use of multi-timeframe analysis and use a top-down perspective when analyzing the markets. Use TradingView’s Pine Script to automate your trades based on specific market conditions and technical indicators, and backtest your strategies to see how they would have performed in the past. Join the TradingView community to learn from other traders and get new ideas. You can also set up alerts to stay up-to-date on market movements and potential trading opportunities.

How to Analyze the Markets Using Tradingview?

Here are a few steps:

Choose the market: Select the stock, currency, cryptocurrency, or other markets you want to analyze.
Load chart: Load a chart for the selected market, with various options for chart type, timeframe, and indicators.
Apply technical analysis: Add technical analysis tools, such as moving averages, RSI, Bollinger Bands, and others, to help you understand market trends and price behavior.
Study market data: Use the chart and indicators to study market data, such as price action, volume, and volatility, and gain insights into market trends.
Watchlist: Create a watchlist of markets you are interested in to quickly access them and monitor their performance.
Share and discuss: Share your charts and ideas with other traders and investors in the TradingView community, and engage in discussion and analysis.

What Strategies to Use for Different Markets on Tradingview

Different markets may require different strategies. For example, in stocks, a common strategy is to analyze the company’s financials, management, and industry trends. In forex, traders often use technical analysis and macroeconomic data. In cryptocurrency, traders often look at network data and adoption rates. It’s important to research and understands each market before developing a strategy. Also, regularly re-evaluate and adjust your strategies as market conditions change.

TradingView trading strategies backtest – does it work?

A backtest with trading rules and settings is coming shortly.