How do I interpret this graph?

[TraderEA6]

Hi,

I run the optimization test and gotten the two graphs below. Appreciate some guidance on how should i interpret it?

Optimization Test Result

Forward Test Result

@roar Appreciate your input too.

Thanks

[josecortesllobat]

1st graph is the optimization results for the IS (In Sample) data where the Expert Advisor has been testing all the parameters combinations according to the genetic algorithm search and the fitness function.

2nd graph is the forward test results for the OOS (Out Of Sample) data where the EA test the best parameters combinations that had good results in the IS data.

https://www.metatrader5.com/en/automated-trading/strategy-tester

[TraderEA6]

@josecortesllobat
Thanks Jose. I know the graph are of two different periods. I mean base on the result. How do i interpret if the EA is working well?

[roar]

@traderea6

• Both periods have approximately same degree of success for the ea, the results are ranging from negative to 30k+.
• Majority of your results are positive, this means the EA made profit no matter what inputs were chosen. Meaning, either you have a really fantastic EA, or your testing period was a bit too short.

Your next step could be to take the best forward result(s) and test the EA on even more out-of-sample data. For example, if your optimization was 2015, and forward 2016, now take the best results and test 2010-2020. I mean just single backtests, where you can see the equity graph.

[josecortesllobat]

I totally support @roar suggestion.

My way is to test the EA on a demo account with those parameters sets that passed my acceptance criteria and let them work to see if the results are consistent and accordingly to the optimization results.

There could be many ways to do it. You just need to find one for which you feel confident with.

[TraderEA6]

@roar

The dataset used are 2018 - 2020. I use 2018 - 2019 for optimization and 2019 - 2020 for forward testing. I choose 1/2 for forward testing.

Thanks. I will continue to explore.

[TraderEA6]

@josecortesllobat Demo account for live is not gona work for me actually as base on my optimization, I dont get trade everyday. For each pair - i get about 120 trades in a year that is like 10 - 12 trades in a month. Which is ok for live trade but too slow for demo account just to know how the EA fair.

Thanks