3/17【Backtest Evaluation Method】We explain all items of the backtest image16
This is the Reiwa Double-E Dragon from EA developers.
To begin with
EA developers assess the goodness or badness of EAs by
checking with “backtesting.”
So as a user
to determine the merit of an EA,
you need the skill of “backtesting discernment.”
With that in mind, this series will
describe how to find winning EAs from backtests.
【About the Profit Factor】】
The profit factor is represented as total profit ÷ total loss.
This value is profitable when it is 1.00 or higher.
And the higher the value, the more efficiently one could earn.
However,
as mentioned in yesterday’s broadcast,
as a “backtesting connoisseur,”
you should not care about the Profit Factor at all.
In other words, in backtests you don’t need to pay attention to it at all.
First, please refer to the following existing articles.
2/19 (Mon) Even with a low Profit Factor, is it still nono!?
https://www.gogojungle.co.jp/finance/navi/articles/65065
2/29 (Thu) The Mystery of Profit Factor
https://www.gogojungle.co.jp/finance/navi/articles/65196
In summary,
a good Profit Factor does not necessarily mean a good EA.
Do not focus on that,
for example,
“The backtest PF is 1.35 but this month it is 1.27; is there any cause?”
such questions are nonsense.
It varies from moment to moment, and
it also changes with the number of trials, so the question has no meaning.
Also,
“If it falls below 1.20, should we take any special action?”
that question is the same.
We never do anything based on the ups and downs of Profit Factor.
You can think that “focusing on it will move you away from long-term profitable results.”
So this is okay.
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【Reiwa no Double-E A Product List】
https://www.gogojungle.co.jp/users/112481/products
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【Series Articles by Reiwa no Double-E】
■EA Beginner Course
https://www.gogojungle.co.jp/finance/navi/series/1700
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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
■ Sincere! Gogojan Raises an Issue
https://www.gogojungle.co.jp/finance/navi/series/1701
https://www.gogojungle.co.jp/finance/navi/articles/64723
■ Double-E FX Random Thoughts
https://www.gogojungle.co.jp/finance/navi/series/610
【The Beliefs of Reiwa no Double-E】
Develop EAs with a forthright approach,
appeal to as many people as possible,
and maintain a long-term WIN-WIN relationship,
aiming to revitalise the EA market and raise literacy.
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