Backtesting and optimization get you started in the right direction. However, given changing market dynamics over time, todays high performance EA may fail to perform at some point in the future. We all know this.

My preference is to backtest and optimize over a 1 year period, then test this on previous random years up to 8-9 years back to get a feel for overall performance. If I like the results, I will then zero-in to more recent trading history.

For example, I use MAs on the Daily USD/JPY. I take the slower MA and multiply this by 6 (7-day MA = a 6-week optimization period, for example). Then, at the end of each trading week I re-optimize by dropping the first week, and adding the week just completed. It is effectively a moving average applied to optimization.

Hello,
I possede an ea (eurusd 1h) ,the profits are very good but backtest is 58 % and 11 errors made go out of tune over 18 months .what I can consider that my EA is viable (good) or the results(profits) are that powder with eyes.
Thank you in advance.

Is it possible to get mt4 data from another mt4 broker platform. how is that done?

Thank You.

__________________
Keep your enemies close and your stops closer

Hello,

I'm backtesting a martingale EA. I can see from the graph that I didn't get a margin call.

How can I compute how far away I was from getting a margin call?


Thanks

I use FXOpen MT4, and it usually gives loss for most EA backtests.
So, I tried Alpari demo MT4 to run EA backtest, and it gives profits.

Is it normal that each MT4 platform gives different result?
It looks like FXOpen MT4 is designed for loss if you use EA.
I tested about 15-20 EAs and only 1-3 are profitable.
(I test EAs have screenshots from you guys)

TX..

Backtests are worthless no matter what broker you use. Don't waste your time. Only forward test. That will give you the best chance of determining how profitable an EA is.

Good point !!
TX.

Hello,

MT4 Backtest engine can only handle M1 (or larger timeframe) data and tries to model the ticks.
Are there any backtesting programs available that can handle tick data? (I have tick data in a txt file)

Thank you in advance :-)

Hello JKookTrader,

every broker has different prices (a different data feed). So it is normal to get very different results, in case you have a scalping EA (trading in the very short term). It is normal to get almost the same results if you trade rarely (long holding periods), and if you go in and out of the market not during very volatile times.

Please note that SOME brokers have 2 different data feeds: the real data feed for their real accounts, and a fantasy datafeed for their demo accounts. This system aims to show you profits in the demo account, to make you open a real account.

noone says that all EAs are profitable. If you take 20 EAs and find 2 profitable ones, then this can be a very good result.

please translate this sentence into English.

Hello jturns,

I consider your answer off-topic. JKookTrader asked whether it is normal to get different results on different brokers.

Furthermore it is NOT a waste of time, to use backtests. It is a very efficient way to use backtests. Backtests help to find those 10% of EAs which seem to have some chance of producing real money. When you have found them, forward tests are needed.

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