Live signal or EA backtest? which one you trust?

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If you are looking for EA for trading, which you trust? the live signal of the EA that show real trading activity and performance? or the backtest?

Testing trading strategies on real ticks
Testing trading strategies on real ticks
  • 2016.08.04
  • www.mql5.com
The article provides the results of testing a simple trading strategy in three modes: "1 minute OHLC", "Every tick" and "Every tick based on real ticks" using actual historical data.
 
samyhussein:

If you are looking for EA for trading, which you trust? the live signal of the EA that show real trading activity and performance? or the backtest?

i only trust 1 of those -- if -- it is done on same broker and account type as my broker and my account type.
 
Michael Charles Schefe #:
i only trust 1 of those -- if -- it is done on same broker and account type as my broker and my account type.
Which of them you want to be on same broker and same account type? live signal and live trading performance or backtest?
 
Samy.H #:
Which of them you want to be on same broker and same account type? live signal and live trading performance or backtest?

both. If they are on different broker, there are many possible causes for discrepencies between your live trading on a different broker.

If only a backtest is available, then, i would also confirm that the backtest is using ticks and data that is same as the brokers, and not from mq demo. as many brokers use mq demo data for their demo accounts, instead of same as their live data.

If the author or seller will not avail this information, then i will "steer clear" of them. and avoid having any interaction with that seller/author because i can not trust a word from them about any other ea of theirs.
 
Michael Charles Schefe #:

both. If they are on different broker, there are many possible causes for discrepencies between your live trading on a different broker.

If only a backtest is available, then, i would also confirm that the backtest is using ticks and data that is same as the brokers, and not from mq demo. as many brokers use mq demo data for their demo accounts, instead of same as their live data.

Let's say signal on same broker and account type, and signal doing well using the EA as trading engine for live trading

But the same EA with the same inputs fail in backtest on same account

What you think about it?

 
Live signal/forward test on same broker of course
 
Samy.H #:


But the same EA with the same inputs fail in backtest on same account

What you think about it?

then you need to ask the author/seller, why. ask them for their backtest settings so you can see same results. And if they do not use every tick based on real ticks, then, tell them they are fake and false idiots, scammers.
 
Samy.H:

If you are looking for EA for trading, which you trust? the live signal of the EA that show real trading activity and performance? or the backtest?

They're more or less equivalent in real ticks mode. Keep in mind that both show you a "past" performance - tomorrow is always a new day and trump is an unpredictable beast 😎
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