EA’s win rate

Geko here.

Among the readers who arrived at this column,

there may be people saying,

"This is my first time with an automated trading system (EA)~"

So I think I’ll write a series of articles that explain EA basics in a way that even beginners can understand.

This time, about the win rate of EAs.

As a fundamental premise, a proper EA always presents backtesting over a long period (preferably over 10 years).

If this premise is not met, we will exclude it from this discussion as a "not proper" EA.

For example, this image.

Here is the backtest of the EA named【Tulamben_EURUSD】 currently listed on Gogojungle.

https://www.gogojungle.co.jp/systemtrade/fx/39494

There is a lot of backtest data shown, but one of the items among them is the "win rate," can you see?

In this example, the part shown as (70.64%) is it.

＊By the way, to promote a bit, even after the official operation period of the backtest extends beyond 2 years, the win rate remains in the 70% range.

Now, can we definitively say that an EA with a 70% win rate is an excellent EA?

This is what I’d like to write about.

Since it’s an adorable EA that I created through trial and error,

it is excellent!

I would like to shout that from the rooftops, but without evidence, it will just be end as a doting parent.

Therefore, I would like to explore the basis for whether it is excellent from the data of a "70% win rate."

This will be continued in the next part because it will be long.