Backtesting results
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Good evening,
Apologies, I am a bit discourage and just looking for some perspective, please. I started using MT5 for my back testing - since this seems to allow for access to better data quality. Often EA developers share backrests seems to be 45 degrees up, all winning trades. I tested my EA with $1k deposit and 0.01 lot size, making use of martingale also. Is this result in image attached reasonable? Feels like I spent hours just to get it here, but nothing I do seems to improve it. Also, can you trust MT5 if it states 100 for quality of data, set on every tick based on real ticks.
Also not sure what all means - sorry. Any feedback would be awesome. Any advice will be great please. -
Of course backtesting can alway get a good result.
Why the backtest have all 300 long trades without any short trades ?
Simply because the period is in bull trend.
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Good observation, thank you... I missed that.
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The 45 smooth equity curve is overrated and a longer time period makes it look smoother and the drawdown tighter vs a shorter time period. You can have a curve that turns flat from time to time and be more profitable. The way I see it is that assuming this is dead on accurate with a live account, you would have profited 1,349.00 buck in 11 years. Yeah you can scale up but it uses martingale which from what I understand doubles down on losing positions and inevitably wipes the entire account. Also as stated earlier it only takes buys which only a bullish trend yields these results. EA's need to be tested on shorter time periods so that you can understand what structure they fail on and know when to use them and when not to. The moment a sellers market kick in or price starts ranging, the EA could drastically give the opposite result. That's why most if not all EA's have periods of profitability and unprofitability because it's nearly impossible to create a strategy that fits a trending market for buying and selling as well as ranging. Then you have to account for how narrow/wide a trend or range is. That's not to say that we shouldn't create them because we should. I just believe that people are chasing their tails in the dark trying to get that equity curve over a long period of time especially when they are using one strategy that favors one market and a system that is akin closer to gambling. With that being said, I don't believe it's reasonable and don't fret over spending hours. Many of us spent many hours on projects that we canned. Some projects can take months of building and frustration.
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Err... 11 years??
