EA performance real vs backtest vs demo

Trading Systems Expert Advisors and Automated Trading
1

Has anybody had much success with EAs in real trading? I’ve been working on one and backtest results are pretty good, but I’m not sure that this performance will reflect in real trading. There’s still a few things to sort out, but progress is looking good.

I will be running it on a demo account, but it needs to be running 24/7 to function properly and won’t be able to do this for a couple of months. The results are shown in the image below. Does anybody think it will actually hit this kind of performance in reality?

image.png1336×257 7.58 KB

1 Like
2

Personally I have not yet found an EA that makes money long term. They all seem to rely on martingale systems.

3

That’s probably because nobody that has a working EA is going to give it away. Even if you sold it for $20k, that’s small fry compared to what you could get from an actual working EA.

Mine isn’t martingale, but it does have a R/R that is very unfavourable hence the big drop downs on the chart. I would be manually stopping these trades as I do with my strategy that this is based on, but until I start forward testing and then live, I don’t know if I believe the results that I’m seeing.

1 Like
4

That is very true! If people really had a working EA there would be no need to sell it, especially if it was achieving the results these marketers band about.

1 Like
6

There are EA that twork long term but they stack profit in a very unpleasant way.
Maybe they profit 2 months and stay in DD 10 month every year even if the final result is positive.
Robust EA and strategies are difficult to endure, while martingales grow 95% of time until they blow.
Many EAs are designed to be sold to rookie traders that think it is possible to profit every month.

7

it’s possible, but there’s no way of knowing

nobody in their right mind with a consistently working EA is ever going to share, sell, advertise or promote it, that’s for sure

and that’s the reason it can’t ever be possible to give the answer “no” to your question (however much one thinks that’s probably the answer)

lots of people (including many financial institutions) have had long-term success with automated trading software that enters and exits trades on their behalf, on the basis of indicator-patterns, price-action-patterns, or combinations of the two, and books describing and discussing them have been published

but those aren’t “EAs”, because those aren’t people using MT4/5, and they’re not people betting against counterparties rather than trading in a real, transparent market, either - and there’s something to be learned from that

still, it’s a similar kind of thing, based on the same principles, and it at least suggests that it might be possible to do it with an EA (and that fact is what keeps the EA-selling industry going, of course)

if anyone does, you should stop listening to them - that’s for sure

that really isn’t possible, for many reasons

that’s a very big red flag, and an additional reason to be very skeptical about the backtesting outcomes

8

Снимок1
Снимок1827×452 18.8 KB

yes all is possible. here is test from 2015 till 2020.
it contains 3 safety levels: 1) stop loss in pips 2) stop out level in money on each pair (size 2-4%) 3) equity stop 30% size on account fully. it trades on 6 pairs same time and all of them in sum never reached 30% account decrase from 2008 till today :slight_smile: as I cant post the monitoring link you can search it for on myfxbook as David’s bot

9

Exactly, new traders and profit seekers think that if they get an EA then their life is sorted. They don’t have to learn about trading and different strategies of trade. Rookies and newbies who are in greed of the extra cash get crunched by the markets because of this thinking.

1 Like
10

The Expert advisors can be written on your own as well which can be a handy tool because then you will know about the different charting techniques and how personal EA can be an integral part of your trading journey.

11

The best case scenario for the automated trade is for scalpers and position traders I think, because scalpers can trade many positions in a single instance. It is automated trading which is the most essential tool for scalpers because through the range of M1 charts to M15 charts, we can open many positions through one script.

12

@paulstrlingg Position trading can also be very beneficial if we automate our trades. I learned through demo trading provided by my broker Fxview that I have fibonacci values as my indicator and we can calculate it for days ahead which gives us the solid entry and exit positions. Previously I used to trade through Xstation through XTB and I was not able to script my trades and actually forgot my entry and exit positions.

13

In my case, recently my broker disabled my EAs on my real accounts.

So probably the full performance of your EA may not necessary comes only from your EA or the market…

14

Proprietary trading platforms are not suited for all the situations like the omni present platforms like MT4 and MT5 platforms.

15

I agree that demo trading is a good way of gaining confidence and testing your knowledge. But at the same time, I also believe that you must not depend on your demo trades completely because that is not how you will perform when you go live. Start small and see the difference before you risk a lot of money.

16

Its quiet true. No EA makes money which are sold online. For the last 2 months i downloaded a lot of EA from mql5 website and tested. Maximum failed. They either are based on martingale or perform poorly on back testing with full tick data.
At least all free EA failed. The few EA which performs good have a big price.

I also found one particular EA which trade using price action without any kind of martingale, but its lifetime price is $10K. If we see its yearly price, it is $99 only. Its reasonable.

Best part is it doubled my trading account in 2020 using EURUSD only with 1% risk management as it was shown in its description. So i am thinking of giving it a try. Its fairly cheap and works, compared to other EA available.

Guys what are your suggestions ?
If you want to check the EA, download it here:

Please suggest soon.
graph

17

Very reasonable for them. :rofl:
Do they offer a money back guarantee if the result is negative after one year?

18

LOL I year money back guarantee. No bro. There is no guarantee. I could not decide. Thinking about the 1 month plan which is $30 only. At least i will not regret saying that i missed a good opportunity. :slight_smile:

19

Ther are hundreds of strategies that make sense and make X pips in 3 months and than lose X pips the next 3 months.
I this way thay make 180$ per believer in 6 months.

One year is just the minumum to state the edge od a strategy, guarantees of 1-2 months are useless, just like monthly fees…

20

That make sense bro. Still can’t I believe in 1 Year back test result ? The EA creator tested it for 1 year and posted its result. I also did a demo back test from 2018 to 2020 end, and same result. It did not blew. That’s why i am interested.

21

I backtested my strategies on 5 years, half of them lost money the next one.
Backtests prove nothing, live performance is 10 times more significant than backtests.
Backtest are only the beginning.