Click [here](https://imgur.com/AOj74e6) to see a screenshot of the whole test, and [here](http://www.filedropper.com/rsi7test) to download the template for MT4 so that you can check it out for yourself. I encourage you to do so if you have the time, because I’m sure I’ve made mistakes as this is the first time backtesting an indicator.
I am using the **RSI set at 7 periods** and the **ATR set at 14 periods**. This is not meant to be a full strategy: I am merely testing these two indicators.
The test has been performed on the last two years of D1 EURUSD. I’m planning on repeating it on all major pairs.
A green line represents a signal that resulted in a win. A red line represents a signal that resulted in a loss.
The signal wins if price moves 1ATR in my favor, before it moves 1.5ATR against me. The signal fails if price moves 1.5ATR against me. In other words: I place my stop at 1.5ATR and my target at 1ATR.
From a money management point of view, I split my risk in two positions of 1% each: one of them is closed out when ATR is reached, and the other one is let open with a stop loss on breakeven.
**Yes, I know it’s a subpar risk-ratio. As long as net pips are positive, I am okay with it.** Most of the winners ended up being part of a larger trend (thanks to the half position left open).
The setup produced 58 trades, 39 of which were winners and 19 losers, for a 67.24% winrate.
So, why am I asking here: I am looking for someone who knows his shit about backtesting who can lend a helping eye on my work. I need to know if my results are realistic, or if I’ve messed up something.
Thanks a lot.
