Backtesting - Most Important Reporting Figure
C
Thats a pretty good list
Total Trades really has to go to #2 as with less than say 1000 trades, you dont have much of a statistical base
100 would be absolute minimum, the more the better
Also watch for the 'max consecutive losses = ' figure, this can be a pointer to the pain factor of a particular EA
And.. watch for significant breaks of the equity trend line - an EA that does that can also cause PAIN
This chart shows good periods and bad, if the equity drops below the range, I will stop trading it until things improve
good Luck
-BB-
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As a newb, and still trying to get a handle on things from an automated standpoint (after failing miserably trying to trade on my own), when you run a back test report, what do you consider the top 5 most important variables in the backtest report, and rank them from first to fifth:
In this newb's opinion:
1) Modelling Quality - Because if you don't have good data to begin with, who cares about the rest.
2) Profit Factor - As it tells you whether you've got a winner or loser and it's expected win/loss ratio.
3) Total Trades - I think this would be a good indicator of just how picky your bot is. A lot of trades means it isn't very discerning in its picks. Fewer picks means it weeds out more of the "bad trades"
4) Maximal Drawdown - A good indicator of risk your bots are taking. Too high a maximal drawdown means you could be putting too much money in the pot.
5) Short/Long Positions - Telling you if your bot has a preference for one form of trading over another, or if it is more successful on one particular type of trade than the other.
Please post what you think are the top 5 most important report factors in grading your bot performance and why...