Backtesting Expert Advisors

Dennis Buchholz

I hope you enjoy reading this blog post.

Backtesting Expert Advisors

Have you ever wanted to know if an investment strategy would be profitable without risking your money? What about strategy backtesting? 

Forex backtesting is the process of testing a trading strategy on historical data to determine how it would have performed in the past.

Backtesting can be used on any time frame, from 5-minute charts up to monthly charts.

But here is the glitch!

You can never get a 100% accurate back-test result. The MetaTrader Strategy Tester does not have historical spreads, market liquidity, slippages, and execution speed in its data that is being used for back-testing.

Any other computer environment issues, such as shutdowns, power outages, internet and broker connections, etc., are not taken into account.

It is likely that you will receive different results if you run a strategy in live trading for some time and then back-test it retrospectively.

And once found any “not satisfying results” in the irrelevant back-test outcome, most traders tend to over-optimize, causing the system to become even more unstable.

People buying Forex tools, only to realize that trading is not easy! Also, why would you rely on an automated system instead of doing it yourself?

In the end, we’re in trading so we can do the daily research and make the right decisions. 

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Agimat FX® iQ Backtest

A tool like Agimat FX® iQ, which has been coded in Python, makes backtesting 100% irrelevant. Agimat FX® iQ is powered by ATCA-01, a Forex Neural Network Cluster.

AI systems are not based on static mechanical codes.

For example, the Agimat FX® iQ algorithm contains 370 scripts. How will you backtest such complicated environment?

And as I said in the beginning of this article, backtesting is without historical spreads, market liquidity, slippages, or execution speed data in the MetaTrader Strategy Tester.

Back-testing a strategy retrospectively will likely result in different results if you run it for a while in live trading.

 

Make your Forex Trading better!

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