about backtest in MT4

 
Im testing my EA in mt4 all the way the graph is good with very good profits in a steady line but at the end of the backtest a brutal fall happen why is that ? 
see image attached   graph of tester
 

Forum on trading, automated trading systems and testing trading strategies

MT5 makes disastrous backtest

Sergey Golubev, 2018.08.31 13:08

I think - it is the trades which were closed based on the strategy tested stopped: all open trades were closed in the end of the testing.
So, I do not think it is the error with data.

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Sergey Golubev:

so its not the fault of the ea ? right ?

but why the tested close the trades with such drop?  the last 3 trades burn the account

i didnt approve the demonstration level for the developer because of that ?

 
Rabih Abdallah:

so its not the fault of the ea ? right ?

but why the tested close the trades with such drop?  the last 3 trades burn the account

i didnt approve the demonstartion level for the developper because of that ?

The last trades when closing backtest burn the account because this EA keeps losing trades open till those trades eat the entire account, that shows this EA is complete useless.

 
mfx123:

The last trades when closing backtest burn the account because this EA keeps losing trades open till those trades eat the entire account, that shows this EA is complete useless.

ok but why over all the way no drop happened you can see that the equity in the graph never droped below the capital thats what bizzar if its like you are saying the account would be burned along te way not only at the end 

 
Rabih Abdallah:

ok but why over all the way no drop happened you can see that the equity in the graph never droped below the capital thats what bizzar if its like you are saying the account would be burned along te way not only at the end 

No drop along the way because the EA did not close the big losing trades along the way. 

 
Rabih Abdallah:

ok but why over all the way no drop happened you can see that the equity in the graph never droped below the capital thats what bizzar if its like you are saying the account would be burned along te way not only at the end 

There is such as floating drawdown on open trades.
And you see when the trades are closed in profit or in loss when backtesting.
But when the backtesting is stopped so all open trades are closed too (sometimes - with loss).

You should use (or you should create) the EA with less drawdown on open trades (otherwise you will get margin call soon or later for example).
It is related to the EA sorry.

 
Rabih Abdallah:

so its not the fault of the ea ? right ?

but why the tested close the trades with such drop?  the last 3 trades burn the account

i didnt approve the demonstration level for the developer because of that ?

This is a freelance project yes?

If the EA is executing according to your specifications, this is no reason to not approve the demonstration.

In freelance, the developer's job is to correctly code the EA to do as you requested. If your strategy results in losses, that is the fault of your strategy and not the developer's coding.

 
Keith Watford:

This is a freelance project yes?

If the EA is executing according to your specifications, this is no reason to not approve the demonstration.

In freelance, the developer's job is to correctly code the EA to do as you requested. If your strategy results in losses, that is the fault of your strategy and not the developer's coding.

yes and i will approve the  manual strategy is great i use it since 4 years

Reason: