How To Use The Reversal IQ Backtester

The Reversal IQ backtester is your personal tool to prove that Reversal IQ works.

With the Reversal IQ backtester you can backtest any asset/timeframe combination, and even create your own Reversal IQ strategy to set alerts for!

Note
While Reversal IQ will always trade optimally, using the Reversal IQ backtester allows you to replicate Reversal IQ’s performance while skipping all the chart visualizations. Traders can deep dive into statistics with the backtester, export Reversal IQ trades to an excel file, set alerts, and much more!

How To Use The Reversal IQ Backtester

Step 1: Go to the asset/timeframe you wish to test.

For this example we will use the 30-minute chart for BTCUSDT.P!

Step 2: Choose Reversal IQ’s aggressiveness and trade direction.

For this example, we’ll use the “Sniper” aggressiveness and trade both directions.

Optional

Change the Min TP/SL ATR setting. This setting forces Reversal IQ to use a greater minimum profit target and stop loss. You’ll probably never have to change this setting, but it’s there incase you want to experiment!

Step 3: Enter the optimized parameters

There’s quite a bit going on here so let’s cover it extensively!

In this image, the Reversal IQ backtester has finished finding optimized settings for the “Sniper Mode” aggressiveness. The top-right table shows the optimal settings for the long strategy of Reversal IQ, and the bottom-right table shows the optimal settings for the short strategy of Reversal IQ.

The Reversal IQ backtester has four adjustable settings for longs and shorts.

• Distance Long
• TP
• SL
• Long AI Aggressiveness

Short settings include:

• Distance Short
• TP
• SL
• Short AI Aggressiveness

The optimal Distance Long setting is shown in the upper-right table. That value is “1”. As shown in the image, we entered “1” into the Distance Long setting for the Reversal IQ backtester. Additionally, the optimal TP/SL for the Reversal IQ long strategy is “1”, which we entered into the “TP AI” and “SL AI” setting for the “AI Long” settings.

The Long AI Aggressiveness setting does not affect the optimization values. This setting exists so you can, for instance, combine a “Sniper Mode” long strategy with an “Aggressive Mode” short strategy. This means you can test sniper, aggressive, and very aggressive mode for Reversal IQ, find the best performing settings for longs out all modes, and for shorts out of all modes, and then test them.

Since our optimized settings are for the “Sniper Mode”, we will leave the “Long AI Aggressiveness” setting at “Sniper”.

The optimal Distance Short setting is shown in the bottom-right table. That value is “1”. As shown in the image, we entered “1” into the Distance Short setting for the Reversal IQ backtester. Additionally, the optimal TP/SL for the Reversal IQ short strategy is “1”, which we entered into the “TP AI” and “SL AI” setting for the “AI Short” settings.

As with the Long AI Aggressiveness setting, The Short AI Aggressiveness setting does not affect the optimization values. This setting exists so you can have your long strategy and short strategy use different aggression settings.

Since our optimized settings are for the “Sniper Mode”, we will leave the “Short AI Aggressiveness” setting at “Sniper”.

Note
The “PF” column of the table indicates the optimized settings scored profit factor. The higher this number is - the better!

Step 4: Enter Commissions and Slippage

Go to the “Properties” table in the Reversal IQ Settings and change contract size, initial balance, commission, slippage, etc.

For this example, we’re using a fee of 0.2%, 2 ticks slippage, $1000 starting balance. You can experiment with compounding and other portfolio tricks in this table!

Step 5: Evaluate Backtest Performance

Voila! We successfully verified the performance of Reversal IQ in just a few minutes.

You can repeat this process for any asset on any timeframe.