Hi guys, just started using EA. I have tested an EA and this is the result. Is this good enough? This is running from January 2011 to April 2011. Is it good enough to apply it in real trading?
Bars in test 2348
Ticks modelled 1744329
Modelling quality n/a
Mismatched charts errors 203
Initial deposit 400.00
Total net profit 36.84
Gross profit 41.18
Gross loss -4.34
Profit factor 9.49
Expected payoff 2.30
Absolute drawdown 5.50
Maximal drawdown 12.76 (3.10%)
Relative drawdown 3.10% (12.76)
Total trades 16
Short positions (won %) 9 (77.78%)
Long positions (won %) 7 (100.00%)
Profit trades (% of total) 14 (87.50%)
Loss trades (% of total) 2 (12.50%)
Largest
profit trade 5.84
loss trade -3.42
Average
profit trade 2.94
loss trade -2.17
Maximum
consecutive wins (profit in money) 7 (19.52)
consecutive losses (loss in money) 1 (-3.42)
Maximal
consecutive profit (count of wins) 19.52 (7)
consecutive loss (count of losses) -3.42 (1)
Average
consecutive wins 5
consecutive losses 1
Keep in mind that the backtesting capability of Metatrader is suspect. It will in some cases very highly over-exaggerate your returns. Backtesting has its place, but think of it in terms of usability. If a script really performs poorly on the backtest, then it probably has no chance in real trading.
But if a script performs well in a backtest, can you assume it will do well in live trading? No. Backtesting should be followed by forward testing. Forward testing is running the script on a demo account for several months to test the merit of the idea and to see the true profit/drawdown picture. Only then will you know if your idea has real merit or not. Analyzing a backtest report I find to be of minimal benefit.
Your test shows a lot of missmatched chart errors. Usually a problem with data quality. Try to download the hst data again and run the test again.
And keep in mind, back tests are not always (only sometimes) indicative for future results. If you are going to forward test your EA, it would be great when you can share your stats with the community.
I am actual trading with a commercial EA and i would be happy to find another profitable EA.
now test it for at least two months on demo. no matter how sure a thing it looks, do not go live until you have done at least this amount of time on demo. You will see why.
