Forex backtest report is not that important because it only represents the past, not the future. When good trend types appear frequently, the winning rate and profit-loss ratio in the backtest report will become very high. It seems that this EA is invincible. When bad trend types appear frequently, the retracement percentage of the backtest report will be very large. It seems that this EA has no value except that it can cause huge losses.
Just like the classic Tetris game, we can't predict what the next block will look like, all we can do is see the latest block and make a reasonable response. The capital curve is a very intuitive backtest indicator, through which you can easily judge all the profit and loss of the trading strategy during the test period.
People generally regard a 45° upward sloping capital curve as a sign of stable profitability, which is quite wrong. Except for the martingale strategy, no EA can achieve such an idealized capital curve.
The normal trend should be a step type. After a long period of sideways fluctuation or a small decline, a large profit will usher in, which will raise the account funds to a new level.
In general, the quality of the backtest report depends on the period of historical data you choose, choose a period suitable for EA, the backtest report is very beautiful, otherwise it is very bad.
Source: Forex Rebate http://www.forexrebateking.com
Just like the classic Tetris game, we can't predict what the next block will look like, all we can do is see the latest block and make a reasonable response. The capital curve is a very intuitive backtest indicator, through which you can easily judge all the profit and loss of the trading strategy during the test period.
People generally regard a 45° upward sloping capital curve as a sign of stable profitability, which is quite wrong. Except for the martingale strategy, no EA can achieve such an idealized capital curve.
The normal trend should be a step type. After a long period of sideways fluctuation or a small decline, a large profit will usher in, which will raise the account funds to a new level.
In general, the quality of the backtest report depends on the period of historical data you choose, choose a period suitable for EA, the backtest report is very beautiful, otherwise it is very bad.
Source: Forex Rebate http://www.forexrebateking.com
