Let's check the backtest period

Geko here.

What should you evaluate to choose an automated trading system (EA)?

I believe the answer lies in backtesting and forward testing.

It is not an overstatement to say that the basic performance of an EA is essentially concentrated in backtests.

In the first place, EA development (at least in my development process) involves repeating backtests based on historical market data, and through trial and error it is completed.

If so, backtests should reflect the fundamental performance of the EA.

Therefore, in this series I plan to broadly explain how to read backtest data.

First, the backtest period

Please first check how long the backtest period is.

I will explain with images how much difference the period makes.

First, this backtest image.

It shows a reasonably steadily rising profit graph, doesn’t it?

Next, please look at this backtest image.

The profit graph is jagged and unstable, isn’t it?

In fact, these two backtest images are of the same EA.

However, only the testing period is different.

The former is from 2007 to 2010.

The latter is from 2011 to 2021.

Just changing the period can cause the profitability to change drastically, as you can see.

So, whether a backtest over a certain period is presented is an important item to check.

By the way, the backtest criteria for selling EA on Gogojungle is as follows.

https://www.gogojungle.co.jp/post/1/16084#mozTocId848110
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