1. Essential Notes
Typically, for any new or previous EA, we at all times prioritize LIVE SIGNAL, REAL ACCOUNT, NOT DEMO to confirm the EA’s efficiency.
To grasp whether or not the EA carried out effectively up to now, and if the LIVE SIGNAL matches the previous backtest (BT) outcomes for private estimation, we have to discover ways to backtest appropriately. This weblog will information you thru backtesting my new EA, Diamond Final.
First, you will need to settle for that the BACKTEST outcomes are just for reference, as they’re in a testing surroundings, not a REAL one. It can’t replicate the actual surroundings 100%, so an anticipated results of 80-85% is already excellent.
2. Take a look at Modes
There are three foremost take a look at modes: Each Tick, Primarily based on Actual Tick, and OHLC 1 Minute.
Folks typically mistakenly consider that Primarily based on Actual Tick is essentially the most correct mode. This isn’t completely true; it additionally depends upon the technique of every EA.
To find out which of the three modes provides outcomes closest to actual stay efficiency, we will need to have LIVE SIGNAL information for not less than one month. We’ll then run all three modes and evaluate the precise outcomes.
The mode that produces outcomes closest to the actual stay sign would be the one we use for backtesting the technique. That is simple and utterly clear.
3. BACKTEST
Obtain the EA right here:
3.1. Precise Outcomes After 5 Weeks of Operating the EA
- Stay sign begin from 2024/08/21
- Begin: 480 USD
- Revenue: 63% – 302 USD
- DD: 11%
- Win-rate: 87.7%
3.2. BT Outcomes = Primarily based on Actual Tick
- Stay sign begin from 2024/08/21
- Begin: 480 USD
- Revenue: 48 USD
- DD: 20%
- Win-rate: 82%
3.3. BT Outcomes = Each Tick
- Stay sign begin from 2024/08/21
- Begin: 480 USD
- Revenue: 274 USD
- DD: 12.49%
- Win-rate: 91%
3.4. BT Outcomes = OHLC 1 Minute
- Stay sign begin from 2024/08/21
- Begin: 480 USD
- Revenue: 253USD
- DD: 10.58%
- Win-rate: 91%
4. Conclusion
As you possibly can see, the outcomes of all three modes are inferior to the precise outcomes (shocking, proper?). The precise outcomes are significantly better than the backtest outcomes.
Amongst them, Primarily based on Actual Tick produced the least correct outcomes in comparison with the actual stay sign (opposite to what many may suppose).
The OHLC 1 Minute and Each Tick outcomes are a lot nearer to actuality.
Due to this fact, the conclusion is that with EA Diamond Final, you can not use the Primarily based on Actual Tick mode for backtesting and acquiring estimates.
You must use the Each Tick mode or OHLC 1 Minute, and an estimate of 80% is adequate.
I hope this text helps you perceive learn how to backtest every EA. It’s attainable that for various forex pairs, the Primarily based on Actual Tick mode could yield nearer outcomes, relying on every EA’s buying and selling technique.