Why is an EA profitable in backtests but blows the account in a real account?

[shanmugapradeep]

Hello,


There are several EAs in the market claiming to be profitable by showing backtest data. I have tried tons of free and paid EAs with amazing backtest results. In backtests, these EAs show impressive returns and very low drawdowns, even over several years of historical data.


However, when the same EAs are applied to a real account with the same settings, the results are completely different—they blow the account within a day, a week, or at most, a month.


Are backtest data unreliable or not legitimate?

 

[Thaddeus Finch]

Hello,


There are several EAs in the market claiming to be profitable by showing backtest data. I have tried tons of free and paid EAs with amazing backtest results. In backtests, these EAs show impressive returns and very low drawdowns, even over several years of historical data.


However, when the same EAs are applied to a real account with the same settings, the results are completely different—they blow the account within a day, a week, or at most, a month.


Are backtest data unreliable or not legitimate?

Backtest data is often misleading because EAs are optimized for past conditions but fail in live markets due to slippage, spread, and execution issues. Many rely on curve-fitting, making them unreliable. If an EA consistently fails in real trading, its backtest results are irrelevant or manipulated. Manual trading with proper risk management is a safer choice.