10/14 The backtest of compound interest operation heavily affects recent performance
FX automated trading, the era of EA developers is the Reiwa double-E.
This time’s talk is,
It is about backtesting of compounding growth having a large influence on recent performance.
That is the content.
In backtesting of compounding growth,
when a trade wins,
the capital increases and the lot size also rises.
Therefore, there are backtests of compounding growth over 10 years or 20 years,
and ultimately, when the results show billions,
toward the end of the backtest period,
in other words, if the most recent lot sizes are on an upward trend,
they become the largest lot in that period.
When that happens,
the profits and losses are greatly affected by the large recent lots.
In other words, in the case of compounding, the latest results have a strong influence,
that’s what it means.
Therefore, for example,
if you develop an EA with compounding mode ON,
the weight of the latest performance becomes large.
You could say there are development approaches like that,
but if you want to tune parameters so that performance is evenly distributed across all periods,
there are parts that are less suitable.
Because the weight is heavily on the current market,
if you cannot win in the older market environments when the weight was small,
there may be cases where you cannot win when the market environment changes.
This area is uncertain because the future market may change,
but
“evenly across all market environments”
an EA that can win is ideal.
The answer to this area will come from
the experience of continuing development,
one insight at a time will grow.
I would like to strive for an even better EA development.
Well then!
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【Reiwa’s Double-E EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Real account performance of the USD/JPY EA
https://real-trade.tech/accounts/73791?via=users_realtrade
Specifically, categorized the EA of Reiwa’s Double-E
https://www.gogojungle.co.jp/finance/navi/articles/67162
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【Reiwa’s Double-E Serialized 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/65978
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/1714
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/articles/65010
https://www.gogojungle.co.jp/finance/navi/series/610
【Reiwa’s Double-E Beliefs】
