EA backtests: read equity drawdown before comparing returns
Two trading robots can finish with the same profit and expose an account to very different floating losses. Before comparing headline returns, check what the report measures, when each test starts and how the positions were sized.
Watch: read equity drawdown first
Balance and equity answer different questions
Balance reflects closed results. Equity also reflects open positions. A basket can show a smooth balance curve while carrying an adverse floating move. Read maximum relative equity drawdown and inspect the equity curve, especially for strategies that add positions or rebalance exposure.
For the published comparisons in my EA Setup Hub, return means net profit divided by the initial test deposit. Drawdown means maximum relative equity drawdown as reported by MT5. Each separate comparison window starts from a new deposit; its results cannot be added together as if they were one continuous account.
A setting can change the strategy you are evaluating
Bitcoin Regime H1 Pro 2.00 has a reference profile with one permitted adverse-move add and a comparison profile with that add disabled. In matched historical tests for 1 January 2020–13 July 2026, the reference profile produced USD 17,657.33 net profit with 26.03% maximum relative equity drawdown. Disabling the add produced USD 3,446.07 net profit with 15.43% drawdown.
These runs use IC Markets (EU), BTCUSD H1, a USD 994 initial deposit and OHLC M1 modeling with 93% history quality. They are simulations. The reference profile was selected using historical results, so this is not independent prospective validation. Neither outcome establishes what another broker or future period will deliver.
An update does not improve every window
Gold Regime H1 Pro 4.10 reduced drawdown versus 4.00 in the three published OHLC comparison windows, with less profit over the longer periods. The recent 16 July–30 September 2026 window still lost 3.20%. June favored the earlier version. Showing both versions and the losing window gives you a more useful comparison than selecting only a favorable chart.
Six questions to put beside every report
- Is this a historical simulation, a demo account or a live account?
- What are the exact version, inputs and position-sizing rules?
- Which broker, symbol contract, dates and modeling method were used?
- Are costs, execution delay and missing-data limitations stated?
- Does drawdown include floating positions, and are difficult periods visible?
- Were the settings selected on these same data, or tested independently afterward?
Use protections with the right interpretation
An equity guard is a rule that detects a condition and attempts an action. It is not a promise that loss cannot exceed a percentage. Other positions, market gaps, slippage, margin events and failed execution can affect the outcome. Read whether a guard monitors the whole account and which positions it is allowed to close.
Download native reports and matching SET files from the Setup Hub. Use the free Market demo in the MT5 Strategy Tester and compare several starting dates. After purchase or rental, validate on a demo account. Bring reproducibility questions to MQL5 Comments or private messages, with account identifiers removed.
Leveraged trading can cause substantial losses. Published backtests are historical simulations, not a live performance record; past performance does not guarantee future results.
