Strategy Test Report, Good or Bad?
in my opinion balance draw down is the most important, it should not be more than 15%. Winning/Loosing ratio is secondary as long as the strategy is profitable with low draw down. But for example a strategy with equal stop loss and take profit in points and a win/ loss ratio more than 55% is good, but you should expect some good dd as well.
ps: be careful with optimization/over fitting as it does not necessarily improve your future trading, test on a demo account first at least 100 trades even if it takes you three months and see if the results have any similarities with the back test, then eventually you could risk some money.
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So i did a strategy test with a new ea. First optimized over the last 3 years and then tested some with what i thought good results on only 2012.
And now i think ive got one of the better ones selected. But how do you select you best settings? On draw down? Profit? Recovery factor? Winning %? Number of trades?
Ive included my report below:
H1 - Eur/Usd - 2012
I think the best ways are:
Winning/losing ratio
Balance drawdown
Profit Factor
Recovery factor...
Im curious what you think and what ratios you think are important..