3/11【Backtest Evaluation Method】We explain all items of the backtest image⑩

EA developers are Reiwa's double-e- (double-e).

First of all

EA developers gauge the quality of an EA through

“backtesting.”

Therefore, as a user

to “discern the quality of an EA,”

you need the skill of evaluating backtests.

With that in mind, this series

will describe “how to find profitable EAs from backtests.”

【About Modeling Quality】

In short, this item expresses the accuracy of backtesting

as a percentage.The higher the percentage, the more accurate the backtest.

For 5-minute to long-term charts, up to 90%,

for 1-minute charts, up to 25%,

and in TDS (Tick Data Suite / Variable Spread),

up to 99.90% is the maximum.

Why is the maximum 25% for the 1-minute chart?

As explained in the “Model” section,

a single tick data is represented by four values: open, high, low, close.

And if you have the four values for a 5-minute bar,

which one comes first, the high or the low, from open to close?

That can be inferred by referring to the 1-minute bar’s four values.

In other words, it can be inferred from the lower time frame, but

for the 1-minute chart, that’s not possible.

Then MT4 creates a “pseudo tick,”

where the order of high and low is simulated.

That is why the highest value becomes 25%.

And these are about “all ticks,”

because unless you use all ticks,% values won’t even be produced.

In other words, accuracy is lower unless you use all ticks,

so please keep that in mind.

Well then!

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【Reiwa’s Double-Eye EA Listing】

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

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【Reiwa’s Double-Eye 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-Eye’s Beliefs】

Develop EAs by principled methods,

gaining more supporters,

and maintaining a long-term WIN-WIN relationship,

aiming to energize the EA market and raise literacy.

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