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Old 03-15-2006, 01:25 AM
pengie pengie is offline
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Some thoughts on testing and designing EAs

I have been testing some of the EAs found here. After some thought, I think most of the EA back tests or forward tests that are given here is not accurate. Why? Because most EAs only open new orders when certain conditions are met but only if there are no existing orders.

That means unless the opened orders are closed, new orders will not be opened even if the certains are met again. This will make the back testing or forward testing inaccurate because the testing will then be dependent on the starting time that you attach the EA to the chart.

In theory, if a trading system is really profitable, you should open new orders every time the system tells you so. You should not restrict the EA from opening new orders just because the previous orders is not closed yet.

So my suggestion to future EA programmers is to code the EA in such a way that new orders will be opened whenever the system tells you so. Do not restrict the EA from opening new orders because of previous opened orders. That way, we can more accurate back test and forward test a EA.
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