3/1【Backtest Evaluation Method】Importance of backtesting
EA developer Reiwa's Double-E is here.
In this series,
“How to Find an EA That Wins from Backtesting”titled,
I will explain how to judge the goodness or badness of an EA from backtests.
Usually,
people say, “Forward testing is everything,” so backtesting tends to be undervalued, but
in fact, it contains important elements for judging an EA’s quality.
I plan to keep sharing such content actively.
First, as a starting point,
the following text is also posted on the EA sales page for Reiwa’s Double-EA,
below.
※Points to judge the goodness or badness of an EA (personal view)
First of all, “having backtests published” is essential.
I have often heard that backtesting is not reliable,
In the first place, EA developers evaluate the logic of their developed EAs by backtesting.
Thereforeeven if forward testing looks good in the short term,
“What backs up the backtest” is importantand, moreover,
most EAs have longer backtest periods than forward periods.
With that in mind,
do not judge an EA’s goodness or badness by a short forward period,
and also, “judge an EA’s goodness or badness by backtesting.”
To put it roughly, backtesting focuses on
Recovery Factor,
Setting Spread,
Expected Gain,
Backtest duration is important.
Win rate is naturally determined by the type of EA, so it is not a target of evaluation.
In addition, it would be good if profits and losses are positive across all years.
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【Reiwa’s Double-EA Listing】
https://www.gogojungle.co.jp/users/112481/products
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【Reiwa’s Double-EA Series Articles】
■EA Beginner Course
https://www.gogojungle.co.jp/finance/navi/series/1700
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About calculating EA risk management
https://www.gogojungle.co.jp/finance/navi/articles/64703
Simple tips to spot fraudulent products (in the case of EA)
https://www.gogojungle.co.jp/finance/navi/articles/64738
Where to check first when you have questions about EA
https://www.gogojungle.co.jp/finance/navi/articles/65619
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■No Nonsense! Gogojan raises issues!
https://www.gogojungle.co.jp/finance/navi/series/1701
Where is Gogojan’s inquiry form?
https://www.gogojungle.co.jp/finance/navi/articles/64723
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■Double-E FX Talk
https://www.gogojungle.co.jp/finance/navi/series/610
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【Reiwa’s Double-E’s Beliefs】
Develop EAs with a forthright approach,
and gain the trust of more people,
maintain a long-term WIN-WIN relationship,
and aim to revitalize the EA market and raise literacy.
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