AVA Backtest [AlgoFuego]
Every candle tells a structural story — contracting, expanding,
pushing higher, breaking lower. AVA reads that story first,
and only then decides what the trend line should do.
A moving average treats every bar identically — it only sees the closing price, never the shape of the move that produced it. A bar that broke wildly in both directions and a bar that quietly consolidated can produce the same average value, even though they describe completely different market states. That blindness is exactly where false signals come from.
By blending adaptive volatility metrics with a refined moving-average algorithm, AVA offers traders a dynamically responsive framework for trend identification — designed for both novice and advanced traders seeking data-driven decision-making.
The algorithm operates in two sequential layers: structural classification of each candle, then exponential volatility smoothing across those classifications. Price alone never touches the final output directly — its structure does.
Each bar's high-low relationship to the prior bar is evaluated and sorted into one of four structural types — inside, outside, higher high, or lower low. This happens on every single bar, continuously, before any smoothing is applied.
These four structural types feed specialized volatility-weighted averages that encode the character of price movement — contraction, expansion, bullish pressure, bearish pressure — rather than just position.
An exponential smoothing layer suppresses isolated spikes and choppy oscillations in the classification stream. The trend line updates meaningfully only when sustained structural change accumulates — not on every noisy tick.
The result is the AVA trend line — significantly more stable than standard adaptive averages in ranging conditions, because it requires real structural evidence before it moves, not just a shift in closing price.
Sustained structural change accumulates until the AVA trend line flips direction. From there, the entry trigger you choose determines exactly when that flip becomes a trade.
AVA Signal reacts to the trend line's own direction change — earlier, more frequent. AVA Cross reacts to price interacting with the line — confirmed by price behavior, typically fewer but more validated entries.
Entry triggers the moment the AVA trend line itself flips direction — bearish to bullish for Long, bullish to bearish for Short. Reacts to accumulated volatility structure changes inside the algorithm. Earlier, higher-frequency entries.
Entry triggers when price crosses above or below the AVA trend line. Reacts to price interacting with the trend structure rather than the line's own direction — entries confirmed by actual price behavior, not just internal state.
The structural flip or price cross triggers entry. Everything after — risk management, performance tracking, candle coloring, bars remaining — runs automatically. You configure the structure logic. The engine measures every result across your full chart history.
Equity Curve (Illustrative)
Performance data is illustrative. Statistics auto-update with each completed trade. Commission simulation deducts entry and exit fees from all compound return figures.
Classifies each candle into one of four volatility structure types, then applies exponential smoothing to produce a trend line that reacts to real market expansion and contraction — not just raw price levels.
Tune Sensitivity to control how reactive the trend line is to volatility shifts, and adjust the smoothing Length to match the volatility profile of your specific market — from scalping to swing strategies.
Simulate Long or Short strategies directly on-chart with configurable entry (AVA Signal or AVA Cross), exit (Signal, Cross, or Bar Count), and full risk management — all running automatically against your chart history.
Percentage-based stop-loss and take-profit levels render visually on the chart as labeled lines — customizable in color and label size from Tiny to Huge. Both feed into every backtesting calculation.
Signal type, total trades, wins/losses, max/min/avg return per trade, win rate, compound equity before and after commission, and bars remaining — live on every new signal, directly on your chart.
Entry, exit, stop-loss, and take-profit alerts are individually toggleable through TradingView. Push notifications and email supported — never miss a structural flip, even away from the chart.
Watch the same trend flip produce two different entry timings depending on which trigger is active. AVA Signal fires the instant the line itself turns. AVA Cross waits one extra step — for price to actually confirm it by crossing through.
As soon as accumulated structural change flips the AVA trend line's direction, the entry fires — even if price hasn't moved past the line yet. Earlier entries, but exposed to the line reversing again before price confirms.
Sustained higher-high bars build bullish pressure in the classification stream.
The trend line itself turns bullish — entry fires immediately on this internal flip.
Price typically moves to confirm the new direction shortly after — but the trade is already open.
AVA Backtest is part of the complete AlgoFuego library. One subscription unlocks all 6+ indicators — MA-DNA, Original Time Cycles, Gann Astrology, Radio Wave, Timeseries-Driven Trading, and every future addition. No individual purchases. No upsells.