An innovative indicator that blends volatility-adaptive trend detection with rigorous backtesting and performance analytics — providing actionable, data-driven insights directly within TradingView.
"A volatility-adaptive trend engine that dynamically responds to how price expands and contracts — creating trend lines that adapt to real-time market conditions while reducing noise."
— AVA Algorithm · AlgoFuegoAVA analyzes each candle's high-low relationship to classify its volatility structure, then applies exponential smoothing across those classifications to build a context-aware, noise-filtered trend line that reacts to real market expansion and contraction — not just raw price levels.
AVA Backtest is an advanced volatility-adaptive indicator that identifies trend direction, generates entry and exit signals, and includes a comprehensive built-in trade simulation engine. Unlike static moving averages, the AVA algorithm dynamically responds to how price expands and contracts — producing a smoother, context-aware trend line that is effective across all markets and timeframes.
AVA Backtest is designed for traders who want an integrated system covering volatility-based trend identification, signal generation, and rigorous strategy testing — all without exporting data or writing custom scripts. Simple enough for beginners to apply immediately, and deep enough for advanced traders to build fully rules-based, data-verified strategies.
Subscribers gain access to the built-in performance statistics panel — displaying signal type, win rates, total trades, max/min/average returns, and compound performance — directly inside the indicator on TradingView.
The AVA algorithm does not react to price — it reacts to how price moves. By classifying each bar's volatility structure before smoothing, it filters the noise that causes standard trend tools to generate excessive false signals in choppy and ranging market conditions.
— AVA Backtest · AlgoFuego Design PrinciplesAnalyzes each candle's high-low structure to classify it as an inside bar (contraction), outside bar (expansion), higher high (bullish pressure), or lower low (bearish pressure). These classifications drive volatility-weighted averages that are then exponentially smoothed — producing a trend line that reflects real market structure, not just price levels.
Control how reactive the AVA trend line is to volatility shifts via the Sensitivity parameter — higher values produce faster responses to expansion events. Adjust the smoothing Length to match the volatility profile of your specific market and timeframe, from high-frequency scalping to weekly swing strategies.
After candle structure classification, AVA applies an exponential volatility filter that reduces short-term noise and limits responses to isolated price spikes. The trend line updates meaningfully only when sustained volatility expansion or directional pressure occurs — making it significantly more stable than standard adaptive averages in ranging conditions.
Simulate Long or Short strategies directly on-chart with full parameter control: choose entry trigger (AVA Signal flip or AVA Cross), define exit conditions (signal-based, crossover-based, or fixed bar count), enable optional entry and exit filters, and run the simulation against the full visible chart history automatically.
Define percentage-based stop-loss and take-profit levels applied to every simulated trade. Both levels render as labeled lines directly on the chart with configurable colors and label sizes from Tiny to Huge — providing clear visual confirmation of trade structure at every historical signal.
Model real trading costs with separate entry and exit commission percentages. All profit/loss calculations, win rate, and compound return figures in the performance table automatically incorporate these costs — producing accurate, non-inflated results that reflect what live trading with your actual broker would generate.
A complete on-chart analytics panel displaying: Signal Type (trade direction + entry/exit mode), Total Trades, Wins and Losses, Maximum/Minimum/Average Returns per trade, Win Rate percentage, Compound Return (before and after commission), and Bars Remaining until the current trade closes. All metrics update automatically as new signals complete.
Entry, exit, stop-loss, and take-profit levels are plotted directly on the chart for every simulated trade. Candles automatically color to reflect the active trade state — bullish color during Long trades, bearish during Short trades, and neutral during flat periods — creating instant visual clarity across the full backtesting history.
Enable or disable individual alerts for Entry signals, Exit signals, Stop-Loss hits, and Take-Profit hits. Each alert type is independently configurable — receive only the notifications relevant to your active strategy without noise from unused event types. Alerts work across all TradingView notification channels.
Run the full AVA signal engine in Long or Short mode independently to study directional strategy performance. Compare Long vs Short results on the same market and timeframe to determine which directional bias aligns better with the AVA algorithm's historical behavior on that specific instrument.
Configure trades to close automatically after a fixed number of bars rather than waiting for a signal flip or price crossover. Enables time-based holding period strategies — useful for testing fixed-duration approaches independent of the AVA signal state, or for limiting exposure on instruments with slow trend development.
Every component of AVA Backtest is independently toggleable. Use only the AVA trend line for direction context, or combine it with the full backtesting engine, trade levels, performance table, and alerts. Each module can be enabled or disabled without affecting the others — adapting the indicator to exactly how you work.
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.
Toggle the AVA trend line visibility and set its width. Define bullish (Up) and bearish (Down) colors. Configure Sensitivity to control volatility reactivity and set the smoothing Length parameter for trend direction modeling across different market profiles.
Select trade direction (Long or Short), define entry trigger (AVA Signal or AVA Cross), configure exit condition (signal-based, crossover-based, or bar count), and set the number of bars for bar count exit mode. Optional entry and exit filters available to reduce false signals.
Enable Trade Levels display on chart. Toggle stop-loss and take-profit with percentage inputs from entry price. Set separate entry and exit commission percentages. Choose label sizes from Tiny to Huge. Full color customization for all on-chart trade level markers.
Toggle the performance table on or off, set its chart position (Top Right, Bottom Center, etc.), customize text size and frame/border colors. Enable dynamic candle coloring by trade state with independent Bullish, Bearish, and Neutral color pickers.
AVA Backtest [AlgoFuego] is a technical analysis and strategy testing tool — not a guaranteed profit system. While this indicator provides actionable, statistically measurable insights into volatility-adaptive trend strategies, past backtested performance is not necessarily indicative of future results. Market conditions are also shaped by fundamental events and macroeconomic factors that purely technical systems do not account for. Always apply sound risk management practices alongside any technical tool.
All indicators below are included in your subscription at no additional cost.