What's your greatest trading challenge when using automated systems?
Most of them are trash mutton dressed as lamb .
Personally, I'll take hog head cheese dressed as suckling. 😋
[B]ack tests do not work in real live conditions .
If you're unable to accurately backtest an EA, perhaps you're coding it inappropriately or testing it inappropriately. For example, if your EA trades on bar close, you can backtest in your live account, on live account data, and on OHLC data. Unless you make inappropriate changes to other backtest settings, OHLC prices are OHLC prices--in both backtesting and forward testing.
Edit: To be clear, I'm talking about highly liquid U.S. futures and forex trading--not CFD's nor crypto coins.No back tests will never tell the story , the only thing is DD, has it a chance to survive .If back tests were true lots of people would be rich off all these EA's on here . 90 percent of them return 300% profit a month. If you know what I'm saying .
IMHO, it isn't a coincidence that the poll choices, "Handling market irregularities" and "Finding a consistently profitable strategy," are presently neck-and-neck. If your EA can't handle market irregularities, then it will likely not be consistently profitable. For example, the holiday season is notoriously bad for trading. Liquidity and momentum generally drops substantially beginning in the week of U.S. Thanksgiving. Although liquidity and momentum can return to regular anytime in January, EA traders will likely continue to experience not necessarily market irregularities but EA irregularities. This is due to the following facts:
- Most EA's read chart history to some extent,
- Most EA's apply patterns of some type to that history lookback,
- Most EA's trade based on that analysis,
- Irregular holiday season market activity renders such patterns ineffective, and
- Market activity must be regular again for the pattern's entire lookback period in order for the pattern's validity to return.
Most of them are trash mutton dressed as lamb .Back testing obsession is what leads people to part with cash when they should full well know back tests do not work in real live conditions .
I absolutely disagree with this statement. Serious sellers WILL and SHOULD provide evidence that their Live Signal align with their Backtest on the same period.
Newbies will not look for it but more advanced and savvy algo-traders will simply ask for it.
Again backtests are the only reference we have in order to evaluate our risk and the expected value of an algo.
So their reliability is absolutely key. This alignment is a corner stone that cannot be faked if the data are open IMHO.
"Again backtests are the only reference we have in order to evaluate our risk and the expected value of an algo".
And here is the catch 22 it is the only reference ,I can make an ea back test look good right now , just like most sellers on here do and these so called serious sellers put up results on these verified sites but the data is lies and manipulated. You are entitled to your opinion , I have been in this game for decades and I have doubled accounts etc and I am saying back tests are mostly trash .Once again how many back tests on here look good and how many of these EA'S actually live up to them ( Answers on a stamp ) If your statement was true people on here would be rich . These sites like forex in general attract charlatans and degenerate gamblers in equal measure , Meanwhile decent developers get pushed to the side .
And here is the catch 22 it is the only reference ,I can make an ea back test look good right now , just like most sellers on here do and these so called serious sellers put up results on these verified sites but the data is lies and manipulated. You are entitled to your opinion , I have been in this game for decades and I have doubled accounts etc and I am saying back tests are mostly trash .Once again how many back tests on here look good and how many of these EA'S actually live up to them ( Answers on a stamp ) If your statement was true people on here would be rich . These sites like forex in general attract charlatans and degenerate gamblers in equal measure , Meanwhile decent developers get pushed to the side .
I edited your post to make it easier to read and understand.
I think you missed the point of Christophe. He is not defending backtests per se, but as "evidence that their Live Signal align with their Backtest on the same period".
A backtest is only a tool, they can be accurate or not, but they are no automatically 'trash' (though of course you are right they are very often). Confronting them to real results is the only way to check how serious a seller is.
I edited your post to make it easier to read and understand.
I think you missed the point of Christophe. He is not defending backtests per se, but as "evidence that their Live Signal align with their Backtest on the same period".
A backtest is only a tool, they can be accurate or not, but they are no automatically 'trash' (though of course you are right they are very often). Confronting them to real results is the only way to check how serious a seller is.
Thanks for the edit of taking the bold writing off ,As far as easier to understand , nothing changed
1. When quoting someone please use the "Reply" button or the "Quotation" style. I had to read 2 times and carefully your initial post to be sure what is quoted and what is from you.
2. On English-language forums, bold is best used sparingly and purposefully. The general best practice is to use bold to highlight a key point, important term, or main conclusion — not just to make text look nicer. If everything is bold, nothing is.
3. I didn't fix the punctuation, the additional space, or the wrong uppercase usage.
Please don't take anything personally, it's not.
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