real vs back testing

 

a sample from my EA

real above, back testing below 

 

there are 2 trades that are a little off from back tested 

 
doshur:

a sample from my EA

real above, back testing below 

 

there are 2 trades that are a little off from back tested 

For me always say the best way to test any EA is by allowing it to trade on live account to see it efficiency. Maybe a cent a account will be good. Backtesting an EA with past history data is sometimes not really helpful. Market condition changes all the time.
 
Roszey:
For me always say the best way to test any EA is by allowing it to trade on live account to see it efficiency. Maybe a cent a account will be good. Backtesting an EA with past history data is sometimes not really helpful. Market condition changes all the time.
How does it work?
 

The result of back tests always depend on the tick generating logic of MTx.

So I exspect only identical behavoir if you rely on the ohlc of a closed bar (or the open price alone).

 
emran07:
How does it work?

You can open a cent account with your broker and deposit like $20 you will automatically receive $2000 which you can use to open mini-lot with. it is safer that way instead of actually depositing real $2000 in a standard account and losing all over night :-). You test the EA for proximately 3months or more and see how it deals with gap, current news event and other crazy moves in the market.

Anyway way my point is some EA show incredible performance and profit while back-testing but start messing up in real-time trading. As you know the market is never the same always changing. You can not really trust past data as a bases of rating an EA. 

 
Actually the post I want to show is back testing is very accurate. The generation of ticks are actually quite impressive. 
 
The tick generation must have 99% quality to be as accurate as possible. If you don't have that accuracy the results might be different. Also there are other things to consider such as if you have a max spread or max slippage on the robot. These two factors influence trading greatly.
 

Backtesting can be manipulated in so many ways, only he who did the testing can know if the results are a true measure of the EA.

Reason: