Backtest Bummer

Filed Under (Journal) by Casey on 14-04-2009

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I seem to be having trouble backtesting… Over the past few days I have been browsing forums and a lot of members seems to think that backtesting is not a good way to find out if an EA works or not.

They seem to say and a lot of other places seems to echo this sentiments. ‘EA are being programmed and back tested to "curve fit" to work with historical market data’

But isn’t that how a strategy is suppose to be tested to know if their guidelines and parameters work?

How else will you be able to test out your strategy?

The debate and goes back and forth does not help me to decide if I should continue to backtest an EA before I spend time demo testing the EA….

Or even put faith in an EA before I purchased it.

That was how I bought EA Shark and EA FAPTurbo. While EA Shark showed promised, forward testing wise did not yield me good results… Only FAPTurbo was more successful

Piptronic was aquired free, it’s backtesting was great but forward testing was a failure because of the big drawdown. Forex Rising also seems to look good but have not testing it out yet…

On top of that, most broker does not allow data download anymore via MT4. I have to download from a server and then import it into my MT4…

So what am I to do? Continue with my principle that each EA needs to be backtested before forward testing it? Now I am only human and I sometimes bend my principle to find my convenience …

With only 24 hrs a day… I need to bend it… But this is a trait that suggest that if I don’t follow my principles, it will be very difficult for me to be a successful forex trader. But why should I want to be a successful trader when I have robots that may or may not perform well for me?

Ok… that’s another post I will leave for next time. But I believe I need to review my principle to backtest an EA before demoing…

There are a few monitoring EA sites, which I can use it as a basis to justify my own curiosity to demo test it myself. So that might cut the corner of backtesting each EA that seems interesting…

Hmmmm…. that’s a thought….

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