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LINE123 2016.06.22 05:37 

I have tested a number of EAs on the Marketplace which show strong backtesting ability but fail in forward testing, these were run on tick charts. Of course the sellers present their backtesting results which look spectacular. Can anyone explain what is going on here? Is this a case of deception by the sellers or just a simple oversight? Thanks for any comments. 

  These were run  with a very low spread of 2. 

Alain Verleyen
Alain Verleyen 2016.06.22 11:51  


  These were run  with a very low spread of 2

You have your answer.
Osama Shaban
Osama Shaban 2016.06.22 15:13  

Please let me tell you a fact from my point of view as a programmer ...

I did hundreds of EAs since the last days of MT3 ... Few months ago, I did 4 or 5 EAs that use price breakout with different ideas.

They give me millions on the back tester, but useless on the forward testing. Not sure if I can make any one of them to work well

but at the moment all of them on the shelf. I can't show people here just excellent back tests for EAs that could not make any profit

on demo or live accounts as a forward test.


Don't rely on back test results. I even don't trust 99% modelling quality. It gives to me some good feeling towards the EA (some hope)

but not trust it until try it on forward testing. 


I believe that should enforce every seller here to link his EA to at least a demo account for a month to give him the license

to sell his product, once his account failed, the EA should be stopped. It is just an opinion !!!. 

LINE123 2016.06.22 21:19  
Thanks to both of you for the insights. 
Juan Fernandez
Juan Fernandez 2016.06.22 23:32  

Strategy Tester is not reliable. The best way is test it is using demo accounts. Its the most close to the real account even demo account conditions sometimes are better than real for show trading more attractive. About EAs, can be profitables in a period of time but I think nobody will sell a EA profitable in long term because if you have one, you will earn enough for dont need sell anything :).

That dont means you can't make money with EAs but you have think about them like food. They have expire date ( when start to be not profitable ) and buy price have be proportional to profits.

Alejandro Cuartas
Alejandro Cuartas 2016.06.24 07:25  

Because a backtest doesnt take care of variable spread, order execution time, curve fitting, missed operations, delays, etc, and this affect the performance of an EA in real market conditions.

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