Accuracy?
It gets a tick from me, provided that your exit logic is also restricted to bar 0 open (on 1M) or earlier chart data. In that case, you wouldn't need to run it in any of the pretend modes, but can use the "open prices only" mode.
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I have a quick question regarding my EA backtest accuracy. I know there's been a lot of questions regarding this before, but this question is a little different, and I would like a second opinion.
I have an EA that takes entry/reversal criteria from the 4HR OPEN *only*. I have it create a stoploss, but no takeprofit. I manually have the EA close for a profit once it hits a certain dollar value in profit. Using strategy tester, I have backtested this on many pairs using the 1MIN timeframe.
My theory is this:
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By using only the 4HR open price for entry/reversal, the EA will not be "faked" by the in-between pseudo-ticks that the backtester creates. Thus, the entry will always be what the "actual" entry would have been, assuming that it was able to get that exact price at the time. (IE no slippage, etc.)
The stoploss and take-profits will be *extremely* close to the actual values, as I'm on a 1MIN timeframe, and the in-between false ticks of the backtester would amount to a 1-2 pip max difference (on average) between the "real thing" and the backtest. Based on the fact that this EA closes between 5-10 pips above, the worst case is closing in the 3 to 12 range?
By having an EA focus on these basic criteria, I think I eliminated most of the possible error usually created with the backtester.
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I've come to the conclusion it's possible to create a profitable EA based solely on criteria such as OPEN/CLOSE/HIGH/LOW that can be backtested with 90% accuracy in terms of tester vs real-world.
What do you think?