5/1(Wed) Reasons to want to see forward for at least a year in the data

This is the Reiwa Double-I-E by EA developers.

This time

"The reason to forward-look for at least 1 year on data"

will be explained.

There is a metric called the Recovery Factor, which is net profit from backtests divided by the maximum drawdown.

The larger this value, the better.

If it is large, it means net profit is high relative to the maximum drawdown.

Now,

A value that falls into the category of "excellent EA" is considered to be

"10x over 10 years."

Over 10 years,

it means there is net profit ten times the maximum drawdown.

This means,

in simple calculation, "1x per year."

In other words,

it takes one year to recover the maximum drawdown,

and that would place it in the excellent category of EAs.

And,

since it has not recovered the maximum drawdown within one year,

data indicates that you should at least forward-test for one year,

in other words, you want to confirm forward performance for at least one year.

An EA is something that in reality has such aspects,

so never be swayed by a single day of explosive profits in a screenshot.

In the initial steps of choosing an EA,

backtesting is one thing,

but I think it's better to choose longer forward tests as well.

Well then!

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【Reiwa no Daburui-E EA Listing】

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【Reiwa no Daburui-E Series Articles】

https://www.gogojungle.co.jp/finance/navi/series/1700

【Reiwa no Daburu-i’s Beliefs】

Develop EAs through straightforward methods,

seek the support of more people,

and maintain a long-term WIN-WIN relationship,

aiming to activate the EA market and improve literacy.

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