【Until January 24, 2021】The popular EAs as well! Backtest FreeEA Campaign
Campaign Overview
Free backtest version for high-performing and upcoming notable EAs is available for free!
During the campaign period, all GoGoJungle members can download the eligible EAs for free.
Period: January 15, 2021 (Fri) ~ January 24 (Sun) 23:59
Operating conditions for the Backtest Free EA: an EA limited to running only for backtests up to February 28, 2021.
No trading will take place on real or demo accounts.
We introduce steps and the tools required so that backtesting is easy even for beginners.
Please learn backtesting and try to find a “good EA” and an “EA that suits you”!
Eligible EAs
【There are MT5 EAs as well】
For MT5 EA backtesting, please refer to the following.
▶Try using the Forward Test feature in MT5 Strategy Tester
https://mt4trader.net/mt5-backtest.html
How to Backtest
The reason for backtesting is that by knowing the “maximum drawdown” within the specified period, you can determine the appropriate amount of capital to operate with.
Holding excessively large lots relative to account funds can lead to ruin risk, so it’s important to understand the EA’s risk through backtesting.
Obtain historical data for the period required for backtesting
There are two ways to obtain historical data below.
1) Download historical data directly from MetaQuotes via MT4
2) Download historical data provided by FX brokers and use it on offline charts
For details, please refer to the following sites, which explain things in detail, so please check them out.
▶MT4 Historical Data Download Source and Import Procedures
https://autofx-now.com/first-mt4/mt4-histroicaldata
▶MT4 EA Verification Backtest and Parameter Optimization Procedures
As a bonus, we attach the “Period_Convert_Alltimeflames” needed for backtesting on offline charts of type 2.
It is a script that can synthesize offline charts of all timeframes by applying to a 1-minute offline chart.
⇒Download PeriodConverterAllTimeframes.zip
Backtest using Strategy Tester
Please refer to the following article for how to use Strategy Tester.
https://www.gogojungle.co.jp/post/1/287
Download Backtest Data (htm files) and Check Results
After backtesting is complete, you can right-click from the “Report” to download the Strategy Report.
This is the commonly seen backtest data (Strategy Report).
▶Here is a reference for reading backtest data
Visual Mode Backtesting Lets You See Trades Realistically!
When backtesting, if you check “Visual Mode,” you can see at which point on the chart entries and exits occur.
You can tell whether it’s contrarian or trend-following, whether exits are TP or trailing, whether multiple positions are closed in one go, etc., which helps you understand the EA’s characteristics better.
Also, when you want to build a portfolio, you can use this to check whether entry timings between EAs overlap.
Understand EA Characteristics (Briefly)
You can quickly see expected annual return and annual trading frequency!
We offer a simple backtest evaluation sheet!
You can see recommended margin, expected annual return, annual number of trades, etc.
Also, by calculating payoff ratio from average profit and average loss, and combining with win rate,
you can roughly gauge the stability of the EA using Balasar’s ruin probability table.
（Note: Balasar’s ruin probability table is downloaded from a separate site）
▼Download the simple backtest evaluation sheet
EA Simple Performance Calculation Sheet.zip
Understand EA Characteristics (Detailed)
QuantAnalyzeris a tool that lets you view monthly and yearly performance in detail.
You can install the free version by registering your email address.
Related sites：
▶Thorough guide on how to use Quant Analyzer — 2020 edition
What makes a Good EA?
When evaluating EAs, metrics like PF (Profit Factor = profit ÷ loss) and risk-return rate (return ÷ maximum drawdown) are used, but ultimatelypayoff ratio (average profit ÷ average loss) × win rateseems to be the key.
As Balasar’s ruin probability shows, by considering payoff ratio, win rate, and the per-trade loss risk relative to funding, you can assess to some extent whether an EA will steadily generate profits or whether losses will accumulate.
If the ruin probability is close to 100%, even if the current results look good, losses may accumulate in the future.
Related articles：Assess EA safety using Balasar’s ruin probability
Please also use user-uploaded backtests.
you can upload the backtest on the respective EA’s sales page, so please make use of it.
