Backtest. How long test an EA? - page 2

 
Chaiya Srisawat:

I run the real and then back test its. Result could be opposite!  I run in demo account and I run in real. Result is not same, real account always have much noise.. really .. chaiya


But this way, I think you can´t go so far on test, right?

 
Jhennifher:

I have a strategie focus on mind. I get good results for 6 years. But, I was checking what traders at community thinks about it. I agree the longest test is better, but the world changes definetelly at 10 years as example.


The last 6 years is a good test. Also as you know your strategy well, you can choose different timeframes for backtesting them, look the chart and select different test period, different market behaviour, when it's trendind, when consolidating, etc. and run little test just to check.

Also mind your historical data, very often it's better to collect them from live datafeed because with the one you can download the more you go in time the less detailed they are. Go into details on special events of your EA, you'll know what historical data is ; it will be a watchmaker work but at least you'll be able to figure how to use backtest in your work for the correct evolution of your EA. 

 
Jhennifher:

But this way, I think you can´t go so far on test, right?


That's why I've said you come to a point you use backtests only for a specific reason, for analysing special moments you are working on or want to detect but certainly not to assess if an EA is profitable or not (At the beginning of the thread I didn't know if it was your EA you wanted to test or one from a third party, now I think it is your own).

 
Chaiya Srisawat:
Hi, I recommend 6 months or 1 years. there is no all time strategies in real life. And test for trade today.

This is importance to evaluate the EA.. But you must think that market cycle is vary, depend on currency pairs. I test many good EA with good results and fail in one day at Crisis and destroy all fund.

chaiya 

thats why i trade bo 😁
 

The length of a backtest won't give you automatically a reliable result!

Better you check the markets for:

  1. longer trends with low volatility (up to the US-bank crisis 2007 up-trend, 2008 down-trend)
  2. high volatility (EUR-crisis, 2011.. if I remember correctly)
  3. flat markets with low volatility (when it's dark outside in Austria;)

Then you understand how your EA acts on the market!

 
jacques366:

The last 6 years is a good test. Also as you know your strategy well, you can choose different timeframes for backtesting them, look the chart and select different test period, different market behaviour, when it's trendind, when consolidating, etc. and run little test just to check.

Also mind your historical data, very often it's better to collect them from live datafeed because with the one you can download the more you go in time the less detailed they are. Go into details on special events of your EA, you'll know what historical data is ; it will be a watchmaker work but at least you'll be able to figure how to use backtest in your work for the correct evolution of your EA. 


Yours words really make sense :D

I´m very thinking about time of trading; It seems that some times, consolidation appears frequently; but what is the zone time printed on chart? Is It the time of broker server?

 
jacques366:

That's why I've said you come to a point you use backtests only for a specific reason, for analysing special moments you are working on or want to detect but certainly not to assess if an EA is profitable or not (At the beginning of the thread I didn't know if it was your EA you wanted to test or one from a third party, now I think it is your own).


Yes, It is mine own EA

 
Carl Schreiber:

The length of a backtest won't give you automatically a reliable result!

Better you check the markets for:

  1. longer trends with low volatility (up to the US-bank crisis 2007 up-trend, 2008 down-trend)
  2. high volatility (EUR-crisis, 2011.. if I remember correctly)
  3. flat markets with low volatility (when it's dark outside in Austria;)

Then you understand how your EA acts on the market!


1. It seems a very nice idea; but It has almost 10 years!!! I think It was another world in this planet! : DDDD Anyway, I will take list of it and check it!

2. Nice!

3. I´m thinking create a parameter to define time to allow EA executes order, what you think? 

 
Starting point for me is by testing 2 separate years. I pick a 12 month period when currency went higher and a separate 12 month period when it was lower. I test these 2 years to see how EA performs in good and bad markets. 
 
Jhennifher:

I have a strategie focus on mind. I get good results for 6 years. But, I was checking what traders at community thinks about it. I agree the longest test is better, but the world changes definetelly at 10 years as example.

There is no strategy that wins always. It might be good for a year followed by some  weeks/months or even a year bad or no good profit behaviour. Therefore any backtest less than 1 year is useless, same with 2 years - except Night trading strategy. 5 to 10 years is a must for me.
Reason: