Why EAs Fail?

[Alejandro Cuartas]

Hello, why the EAs show excellent performance in demo an backtest but in real are completelly different.?

[Cuong Truong]

Alejandro Cuartas:
Hello, why the EAs show excellent performance in demo an backtest but in real are completelly different.?

It could be because of broker increasing spread during live trades.

[Alejandro Cuartas]

Cuong Truong:
It could be because of broker increasing spread during live trades.

Thanks

[Mehrdad Shiri]

Alejandro Cuartas:
Hello, why the EAs show excellent performance in demo an backtest but in real are completelly different.?

the algorithm is not good enough and they are not have reality modeling when they code it. bad algorithm.

[Mohammed Abdulwadud Soubra]

Cuong Truong:
It could be because of broker increasing spread during live trades.

it is possible to make an option in EA inputs/parameters for Max. Spread

so, when the spread is higher than the Max. Spread then no trades will open

[Mohammed Abdulwadud Soubra]

Alejandro Cuartas:
Hello, why the EAs show excellent performance in demo an backtest but in real are completelly different.?

some times, in the back tester you have something called MODELLING QUALITY

most of traders/testers are using bad modelling quality in the percentage of 25%

SEARCH in google about this article (to get real data and higher modelling quality)

[Alejandro Cuartas]

Mohammad Soubra:

it is possible to make an option in EA inputs/parameters for Max. Spread

so, when the spread is higher than the Max. Spread then no trades will open

But in the backtest the spread is fixed, so how can i backtest an EA with that option?.

[Attila Moricz]

Alejandro Cuartas:
But in the backtest the spread is fixed, so how can i backtest an EA with that option?.

Select current spread

[Mohammed Abdulwadud Soubra]

Alejandro Cuartas:
But in the backtest the spread is fixed, so how can i backtest an EA with that option?.

Yes Possible

Then, It will work in all cases on back tester

But real time tradind it will stop trading in case of spread is higher than the pre-defined max. spread

Note that the back tester has some limitations and it is just a tool...

[Alejandro Cuartas]

Attila Moricz:
Select current spread

Select current spread option will select actual spread to make all the backtest, is still fixed.

[Alejandro Cuartas]

Mohammad Soubra:
Yes Possible

Then, It will work in all cases on back tester

But real time tradind it will stop trading in case of spread is higher than the pre-defined max. spread

Note that the back tester has some limitations and it is just a tool...

Is true, will be great if we can use variable spread in backtests.