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Very big difference between backtesting and live trading of EA, any explanation?

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Stephan
15
Stephan  

Maybe someone can help me with the following problem. I'm working on a expert advisor now yesterday it was working around the publication of the minutes of FED.

The expert advisor did trade however it traded not profitable, because it closed the position very quick(as per EA). But now I'm back testing and he trade profitable(because is opened the position earlier) 

During the live trading the EA was not trying to open a position, see pictures of the back testing and live trading below. Hope someone can help.

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Backtesting


Live trading

SYED NAUFAL GADDAFI
1399
SYED NAUFAL GADDAFI  
Live trading always have setback. Nothing always going smoothly.
Stephan
15
Stephan  

Yes offcourse I'm aware of that. But the difference is really big in this case I think. And with the live trading the ea didn't want to open a trade till it opened it in the picture, while back testing it opened in way before that.

This difference is normal with back testing? The difference between a 35 pip profit or 10 pip lose looks to me really big?

SYED NAUFAL GADDAFI
1399
SYED NAUFAL GADDAFI  
You should do a forward test at demo account first before going for real account and work the logic from there.
Keith Watford
Moderator
10637
Keith Watford  

Live trading around news times often have jumps in price

The live EA will suffer because of the jump, whereas the strategy tester will get a price even if it is unavailable in real time. 

Stephan
15
Stephan  

Ok, thank,

I did some forward tested, and already traded with the ea live where it did work.

The explanation of Gumrai sounds good, the strange thing was that the EA was not trying to buy, however i'm sure there were moments where he could buy.

Thanks for the info, I will continue working on the EA

whroeder1
15712
whroeder1  
The tester doesn't have gaps. SL/TP are always at set value, no slippage. Did you set a reasonable average spread?
Stephan
15
Stephan  
In the EA I don't use SL/TP, and I used the spread at current.
gadget
100
gadget  

Stephan your question(s) is(are) quite vague.

Testing a system on historic data has limited interest, a bit like unit testing an IT system - keeing aside that the system needs to be limited as well to be testable in MT. That being said, in the tester window you should be able to get the chart where to check what you claim to be wrong, and the good thing of the tester is it will generate all traces if you have put some.

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