Wow… this is a great EA man… It’s profit factor was like 10 and above….

What am I talking about? Well it’s EuroBlaster of course… This was the EA I backtested next after PipMaker and Cyborg but wanted to post this later… why?? Because I wanted to reconfirm more results…

I tested and try to optimize this sucker… So here goes the results

Click the image to bring up the statement

Profit factor = 10.25

Profit factor = 10.56

Profit factor = 10.78

So… as usual I was excited… I could probably do something with this… I went back to extend the backtesting time line till 1999

Profit factor = 1.14

This was my expression when the results popped out… geess… it is something that does not withstand the test of time. What makes it so sure that it will withstand the future?

Still with a profit factor of 1.14 seems to be an interesting system….

After sorting out backtesting PipMaker and also EuroBlaster… (which I put it in another post) I manage to test the one EA that was the source of my stupidity, laziness, carelessness and also my downturn on my account balance.

I backtested Alfaforex… and gees… not as impressive as I would have imagine. But it was funny… I did two same backtest and the result is different. Funny… Have a look

Backtest one

Backtest two

Now click on the image to draw up the statement… you will see that the parameter is the same but the profit factor are different…

So what does this say… firstly… backtesting does not seem to be consistent or my data are fu(ked up. Anyway… backtesting result model are 90% accurate as they stated it clearly or maybe even worst.

The curve looks good… it’s still profitable that I can say for sure… but when you put it live… and if you see the downtrend on your account… what do you do?? Of course you would stop it… But that is another dilemma isn’t it? The EA is profitable so what we need is persistence… rather than jumping the guns and look for the next holy grail no?

I did not want to stretch it over time… because I just don’t want to indulge in my own mistakes. While the profit factor is above one… it does not mean that the future results will yield that sort of results.

It has proven that on my real account… while it looked pretty on my demo.

I wanted to test EURCAD but there is something wrong with my data… could not get a single trade for EURCAD… Oh well… since I am going to chuck this one in the archive folder… Might as well give EURCAD a miss….

But I got a strong feeling that I might or will revisit this EA…. Why? Because of the fact that it is profitable… secondly, if I were to use my 2% rule… I should be able to come out tops… I think….

This first order of business when I started to do backtesting was to backtest Cyborg EA. On top of that, I was also backtesting another EA PipMaker V3.15… (Open source edited to include Martingale Strategy)

Now PipMaker was a tough sucker to backtest. Why? Because it took like 2 hours just to backtest one currency pair… And it was not from 1999 till todate. It was from 01/01/2008 till 29/05/2009… My gawd! And I was backtesting it on both broker… Interbank and Alpari. Two of what I would say my main account.

Anyway… it was pretty interesting. Before I dive into the actual backtesting results. I wanted to express my view on Martingale Strategy.

Martingale system has been widely used in casino but I have never come across it until a few months back when I was looking into Forex Funnel. Did not dive into it until I got Cyborg EA. And did not backtest it until well…. last week when my penpal forwarded to me PipMaker V3.15

Martingale stategy is a really scary strategy. In casino using Martingale startegy, you double up your bet just to win 1 credit… This strategy was mostly used in Roulette playing black/red. You double up your bet when you lose your initial bet and continue to double up until you hit a win.

And you only win 1 credit… Here is a clearer explaination on wikipedia… Martingale Betting System .

And here is my personal experiences with casino roulette systems … (What can I say… I just love gambling)

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