3/9 [Backtest Evaluation Method] We explain all items in the backtest image⑧

EA developer Reiwa’s double-e is here.

First of all

EA developers evaluate the quality of EA through

“backtests.”

Therefore, as a user

to “judge the quality of an EA,”

you need the skill of evaluating backtests.

With that in mind, this series

will write about “how to find winning EAs from backtests.”

【About parameters】

What to be careful about with parameters is as follows.

① Having more parameters does not necessarily mean a better EA

② Rather, many parameters can be a way for the EA developer to retreat from responsibility

③ Beginners should first keep only the lot size setting for risk management

④ Sometimes other developers have defaults set to compound interest, so beware

and so on.

① When there are many parameter items displayed,

you might feel, “It looks like a precise and amazing EA,” but

that is not the case at all.

Rather, it can feel cumbersome and hard to use,

as noted in ②,

saying, “It didn’t make money because the parameter tuning was bad,”

becomes an excuse,

which I view as the EA developer’s “escape.”

If you compare it to sushi restaurants that are conveyor-belt versus non-conveyor-belt,

in a conveyor belt place you may customize taste,

while in a non-conveyor-belt place the way you eat is simple and fixed.

It means the parameters are kept to the minimum to win.

If a non-conveyor-belt restaurant owner says,

“Please use that seasoning to make it tastier.”

“If it doesn’t taste good, it’s your fault.”

you’d be like, “Huh!?”

That would be unfriendly,

so, as in ③ for beginners,

a simple setting where only the lot is adjustable is better,

beginners should first think about risk management with only the lot,

that would be best.

And in that case,

sometimes another EA developer sets the default to compound,

and you might enter with an enormous lot without realizing it.

That’s about all for now.

See you!

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【Reiwa’s Double-EI EA listing】

https://www.gogojungle.co.jp/users/112481/products

【Reiwa’s Double-EI series articles】

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

https://www.gogojungle.co.jp/finance/navi/articles/64703

https://www.gogojungle.co.jp/finance/navi/articles/64738

https://www.gogojungle.co.jp/finance/navi/articles/65619

https://www.gogojungle.co.jp/finance/navi/series/1701

https://www.gogojungle.co.jp/finance/navi/articles/64723

https://www.gogojungle.co.jp/finance/navi/series/610

【Reiwa’s Double-EI beliefs】

Develop EA with a straightforward approach,

gain the trust of more people,

and maintain a long-term WIN-WIN relationship,

aiming to revitalize the EA market and improve literacy.

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