Found a scary EA
BOTH backtest and forward testing in the strategy tester of mt5 are profitable.
Does it means it will be profitable in real market as well?
What I need to know before I purchase is: What tick data is being used in the forward testing? Is it the data from the past or from other symbol?
- Non USD pair like EURGPB/AUDNZD take long time taken to complete a test/optimization why is that?
- An EA cheated the backtester? Biggest scam in my forex life!
- PolyFitScalper
Kwok Fung Chan:
BOTH backtest and forward testing in the strategy tester of mt5 are profitable.
Not necessarily. Be sure to test on the live account data of your broker-dealer and on real ticks if the EA trades on tick data. Don't forget to set slippage at an average or higher size for your live account. If you're testing on OHLC data because the EA trades on that, set a maximum live spread size for your live account as well. Also, backtest the EA for as long as the Tester and your live data support doing so. BOTH backtest and forward testing in the strategy tester of mt5 are profitable.
Does it means it will be profitable in real market as well?
Kwok Fung Chan:
What I need to know before I purchase is: What tick data is being used in the forward testing? Is it the data from the past or from other symbol?
What I need to know before I purchase is: What tick data is being used in the forward testing? Is it the data from the past or from other symbol?
If the EA is a single symbol EA, all tick data is historic tick data in the Tester. Forward testing in the Tester simply adds previously untested time to the current backtest without optimizing.
Ryan L Johnson #:
Not necessarily. Be sure to test on the live account data of your broker-dealer and on real ticks if the EA trades on tick data. Don't forget to set slippage at an average or higher size for your live account. If you're testing on OHLC data because the EA trades on that, set a maximum live spread size for your live account as well. Also, backtest the EA for as long as the Tester and your live data support doing so.
I always test with Every tick with real ticks. And the EA is not spread and slippage sensitive.Not necessarily. Be sure to test on the live account data of your broker-dealer and on real ticks if the EA trades on tick data. Don't forget to set slippage at an average or higher size for your live account. If you're testing on OHLC data because the EA trades on that, set a maximum live spread size for your live account as well. Also, backtest the EA for as long as the Tester and your live data support doing so.
If the EA is a single symbol EA, all tick data is historic tick data in the Tester. Forward testing in the Tester simply adds previously untested time to the current backtest.
Can you explain what you mean by "adds previously untested time to the current backtest."?
Kwok Fung Chan #:
I always test with Every tick with real ticks. And the EA is not spread and slippage sensitive.
I always test with Every tick with real ticks. And the EA is not spread and slippage sensitive.
Can you explain what you mean by "adds previously untested time to the current backtest."?
The optimizer quits running at the start of the forward test─for the purpose of actually testing the history on which the optimizer ran.
The more concerning thing to me is the fact that you labelled the EA "scary" in your Topic title. That makes me think "Martingale." If that's the case, steer clear of it.
Strategy Testing - Algorithmic Trading, Trading Robots - MetaTrader 5 Help
- www.metatrader5.com
The Strategy Tester allows you to test and optimize trading strategies ( Expert Advisors ) before using them for live trading. During testing, an...
Kwok Fung Chan:
BOTH backtest and forward testing in the strategy tester of mt5 are profitable.
Backtests and forward tests inside MT5 mean nothing by themselves. The real question is: how realistic is the data and execution behind them.BOTH backtest and forward testing in the strategy tester of mt5 are profitable.
Does it means it will be profitable in real market as well?
What I need to know before I purchase is: What tick data is being used in the forward testing? Is it the data from the past or from other symbol?
A lot of EAs look "Super Profitable" because they're optimized on historical data. That doesn’t mean they can survive live spreads, slippage, latency, news volatility, broker execution, or changing market conditions.
And about the forward test in MT5 strategy tester:
It's still using historical tick data. MT5 simply splits the past data into 2 parts:
• One part for optimization/backtest
• Another unseen part for the forward test
It's not using live market data, and it's not pulling ticks from another symbol unless the EA itself is coded to reference other symbols.
So before buying:
• Check if the EA has verified live results on a real account
• Compare live execution vs backtest quality
• Check if it uses any sort of risky strategy, like martingale, grid, or recovery systems to stay profitable
• Look for low drawdown consistency, not just profits
• Watch out for curve-fitted systems with insane equity curves
A profitable tester report is easy to manufacture.
A profitable live account is where reality starts.
TRUST IS EARNED IN LIVE CONDITIONS. NOT IN PERFECT SIMULATIONS.
Ryan L Johnson #:
My "scary" means scarily profitable. No martingale and it uses stop loss.
The optimizer quits running at the start of the forward test─for the purpose of actually testing the history on which the optimizer ran.
The more concerning thing to me is the fact that you labelled the EA "scary" in your Topic title. That makes me think "Martingale." If that's the case, steer clear of it.Alex Holloway #:
Backtests and forward tests inside MT5 mean nothing by themselves. The real question is: how realistic is the data and execution behind them.
You made some very good point. Yes, he has live icmarkets signal of the EA as well. So i have to be very careful.Backtests and forward tests inside MT5 mean nothing by themselves. The real question is: how realistic is the data and execution behind them.
A lot of EAs look "Super Profitable" because they're optimized on historical data. That doesn’t mean they can survive live spreads, slippage, latency, news volatility, broker execution, or changing market conditions.
And about the forward test in MT5 strategy tester:
It's still using historical tick data. MT5 simply splits the past data into 2 parts:
• One part for optimization/backtest
• Another unseen part for the forward test
It's not using live market data, and it's not pulling ticks from another symbol unless the EA itself is coded to reference other symbols.
So before buying:
• Check if the EA has verified live results on a real account
• Compare live execution vs backtest quality
• Check if it uses any sort of risky strategy, like martingale, grid, or recovery systems to stay profitable
• Look for low drawdown consistency, not just profits
• Watch out for curve-fitted systems with insane equity curves
A profitable tester report is easy to manufacture.
A profitable live account is where reality starts.
TRUST IS EARNED IN LIVE CONDITIONS. NOT IN PERFECT SIMULATIONS.
If the forward test use past data, then there is no reason to trust it. Some ea trained to be very profitable in past data but die in real market.
I think i will give this EA a try anyways?
Kwok Fung Chan #:
My "scary" means scarily profitable. No martingale and it uses stop loss.
My "scary" means scarily profitable. No martingale and it uses stop loss.
That's good news.
Just make sure that your own backtest is proportional in length to the trading frequency of the EA. In other words, a scalping EA that trades 20 times per day only needs several months while a swing trading EA that trades 2 times per week needs many years.
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