5/17★Sometimes I borrow the power of ChatGPT, its number 97
FX Automated Trading, the EA developerReiwa’s Double-EE.
This series has been written with the aim of posting daily since last year.
Probably I’ve continued for almost a year now!
If you read what I’ve written so far,
I believe you’ll come closer to better EA operation.
And since I’d like to take a short break,
I’ll continue posting with the help of ChatGPT.
Occasionally, I will post irregularly as before.
FX automated trading, EA developer Reiwa’s Double-EI.
This time,we received a very interesting questionthat I’d like to share with everyone.
Question content
“Will developed EAs be released after forward testing in addition to backtesting, such as actually operating on a demo account?”
“Also, I’d like to know how long they should be operated before sale.”
If backtests do not fail, is it okay to sell immediately?
Or should they be operated for six months to a year before selling? I asked because I was curious.”
Reiwa’s Double-EI answer
Thank you for the very good question.
In short, forward testing (testing in actual demo or real accounts) for EAs is something I believe is beneficial.
However, if the backtest results are reliably robust, forward testing is not strictly mandatory.
Significance of backtesting
For the EAs I develop, I typically conduct long-term backtests dating back before the Lehman Brothers crisis,
at least to 2006 or earlier.
In other words, using 15 to over 20 years of historical data, I develop EAs considering various market conditions and economic indicators.
Such long-term backtesting can validate resilience to a wide range of market environments,
and in a sense, it has a reliability comparable to forward testing.
Since realistic forward testing over 15 or 20 years isn’t feasible,
I judge that backtests can reasonably forecast future operating results to some extent.
Role of forward testing
Of course, it’s true that performing forward testing is better than not doing it.
However, in reality, most information needed can be obtained from backtests.
As you gain experience in EA development, you’ll naturally learn to discern necessary tests from unnecessary ones.
For example, there are cases where forward testing only reveals certain market conditions or how spreads widen, but
in my case, I handle morning scalping with particular caution.
I release such EAs only after confirming it works in demo or real accounts.
Also, when introducing entirely new logic or methods,
I always go through forward testing before listing.
Conclusion: forward testing is recommended, but
if an EA has solid long-term backtests, you can sell it to some extent based on those results.
I hope you find this helpful.
Thank you very much!
And that’s it for now!
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【EA Beginner to Intermediate Flow Summary】
First, it’s essential to “master installing EAs.”
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MT4 EA (Expert Advisors), Indicator Installation Procedure
https://www.gogojungle.co.jp/post/1/8212
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※GoGoJungle Video Version※
Even at first, not everything can be understood at once, and many people may stumble.
I also stumbled many times at the start, so don’t rush—go step by step!
If you have questions, there is a “Contact Form,” so please use it!
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https://www.gogojungle.co.jp/inquiry
【How to Choose an EA】
Now that you seem ready to operate an EA,
you might think, “I don’t know which EA will win… I don’t want to lose…”
So Reiwa’s Double-EI has published articles to help you determine things from backtesting.
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■ How to Find Winning EAs from Backtesting
https://www.gogojungle.co.jp/finance/navi/series/1714
【How should EA risk management be done!?】
And no matter how excellent an EA seems,
ignoring risk management will lead to ruin in FX.
Therefore for EAs,what is the method for risk management?
The article answering this is below.
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■ About calculating EA risk management
https://www.gogojungle.co.jp/finance/navi/articles/64703
【EA Operation Mindset is Also Important】
And to sustain EA operation long-term, the mindset of operating EA is also important.
Those articles are
12/30 Year-End and New Year SP!! EA Full Explanation Course Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
https://www.gogojungle.co.jp/finance/navi/articles/72829
https://www.gogojungle.co.jp/finance/navi/articles/73797
That said,
the content is quite substantial and important, so
even if you don’t understand it immediately, please make sure to read it!
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【Reiwa’s Double-EI EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically categorized Reiwa’s Double-EI EAs by genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Portfolio diversification by genre is essential)
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【Reiwa’s Double-EI Series Articles】
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/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-EI Beliefs】
Develop EAs by solid methods,
and earn the affection of more people,
maintain a long-term WIN-WIN relationship,
aim to revitalize the EA market and elevate literacy.
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