How do you validate that an EA is truly profitable?

 
  • 14% (2)
  • 29% (4)
  • 36% (5)
  • 14% (2)
  • 7% (1)
Total voters: 9
 
Osmar Sandoval Espinosa:
  • Only backtesting on historical data
  • Backtesting + forward testing on demo
  • Testing on a small live account
  • Statistical metrics (Sharpe ratio, profit factor, max drawdown) as primary filter
  • I don't validate beyond simple backtesting

Get an investor password to an algorithmic trader's live account─the only way to avoid BS 100%.

Then crosscheck it against your own backtest of the same EA.

 
Ryan L Johnson #:

Get an investor password to an algorithmic trader's live account─the only way to avoid BS 100%.

Then crosscheck it against your own backtest of the same EA.

I do this to and i can confirm this is also for me the best sulution :)
 
Simply you have to wait at least 3 - 6 months so you can validate the EA real performance and tell if it's really worth it or not.
 
Ryan L Johnson #:

Get an investor password to an algorithmic trader's live account─the only way to avoid BS 100%.

Then crosscheck it against your own backtest of the same EA.

Yeap, I think the same about that, but I'm asking more in manner of the building process.

What is better to validate that an EA is trully profitable and not just a good graph on the strategy tester.

 
Alex Holloway #:
Simply you have to wait at least 3 - 6 months so you can validate the EA real performance and tell if it's really worth it or not.
Do you like demo or putting small amount of funds?