Universal Signal Backtester

The Universal Signal Backtester is LuxAlgo's on-chart framework for signal validation: feed it almost any entry logic (a predefined moving average cross, a crossover of two external sources, or trigger events from another script) and it simulates the trades, draws every entry and exit, and grades the outcome. Its dashboard reports PnL, win rate, Sharpe ratio, profit factor, recovery factor, and max stagnation, plus a performance heatmap by day of week or by month.

How to Trade the Universal Signal Backtester?

• Predefined Crosses: quick tests of standard setups such as the 9/21 EMA or Golden/Death Cross.
• External Sources: select two plotted series and backtest their crossovers.
• External Signals: connect triggers from your own indicators, with logic like "Not NA" or "Crosses Over 0" initiating trades.
• TP/SL ladder: enable up to three take-profits and stop-losses for partial exits, measured in ATR, ticks, or price points.
• Heatmap read: weak days or months expose time-based inefficiencies to filter out.

The tool simulates spread and commission through Forex, Crypto, and Stocks profiles or manual values, and an ATR choppiness filter ignores signals during low-volatility chop.

Universal Signal Backtester Settings

• Source Mode: the entry logic (Predefined, External Sources, or External Signals).
• Signal Logic: how external signals are interpreted (e.g. Value Changes, Greater Than 0).
• Distance Type / ATR Length: the unit for targets and stops (ATR, Ticks, or Points) and the ATR lookback; Trade Direction filters long only, short only, or both.
• TP/SL 1, 2, 3: toggles each exit level and sets its multiplier.
• Use Costs / Cost Profile: applies realistic trading expenses.
• Show Dashboard / Heatmap Period / Suggested TP Metric: dashboard layout, day-or-month heatmapping, and the suggested-TP logic.

Frequently Asked Questions

Can it backtest signals from my own scripts?

How does it relate to the LuxAlgo Backtester (S&O)?

Is the Universal Signal Backtester free?