1. Essential Notes
Typically, for any new or outdated EA, we all the time prioritize LIVE SIGNAL, REAL ACCOUNT, NOT DEMO to confirm the EA’s efficiency.To know whether or not the EA carried out properly previously, 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 atmosphere, not a REAL one. It can’t replicate the actual atmosphere 100%, so an anticipated results of 80-85% is already excellent.
2. Check Modes
There are three major check modes: Each Tick, Based mostly on Actual Tick, and OHLC 1 Minute.
Folks typically mistakenly consider that Based mostly on Actual Tick is essentially the most correct mode. This isn’t solely true; it additionally is dependent upon the technique of every EA.
To find out which of the three modes offers outcomes closest to actual stay efficiency, we will need to have LIVE SIGNAL information for at the least one month. We are going to then run all three modes and examine 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 Working the EA
Reside sign begin from 2024/08/21 Begin: 480 USD Revenue: 63% – 302 USD DD: 11% Win-rate: 87.7%
3.2. BT Outcomes = Based mostly on Actual Tick
Reside sign begin from 2024/08/21 Begin: 480 USD Revenue: 48 USD DD: 20% Win-rate: 82%
3.3. BT Outcomes = Each Tick
Reside 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
4. Conclusion
As you’ll be able to see, the outcomes of all three modes are inferior to the precise outcomes (shocking, proper?). The precise outcomes are a lot better than the backtest outcomes.
Amongst them, Based mostly on Actual Tick produced the least correct outcomes in comparison with the actual stay sign (opposite to what many may assume).
The OHLC 1 Minute and Each Tick outcomes are a lot nearer to actuality.
Subsequently, the conclusion is that with EA Diamond Final, you can not use the Based mostly on Actual Tick mode for backtesting and acquiring estimates.
It is best to use the Each Tick mode or OHLC 1 Minute, and an estimate of 80% is adequate.
I hope this text helps you perceive tips on how to backtest every EA. It’s doable that for various foreign money pairs, the Based mostly on Actual Tick mode could yield nearer outcomes, relying on every EA’s buying and selling technique.