Backtesting with Indicators

How to construct, test, and validate trading strategies using RSI, MACD, Bollinger Bands, Moving Averages, and ATR.

The Role of Indicators in Strategy Replays

Indicators like the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Bollinger Bands are mathematical transformations of price data. Backtesting indicators helps you identify whether their signals provide a reliable statistical edge over a large number of trades, rather than relying on individual cherry-picked chart examples.