Flex EA 4.91
The search for the best setfiles
IN MY OPINION,
In order to find the best parameters for a setfile, I would like to show how I try to proceed with the backtests.
-I believe that the most important thing in such an EA is the probability / frequency of the drawdowns (DD) that will occur.
-In the picture below you can see that I made a backtest study over a period of 3 years for the pairs GBP NZD and GBP USD, with certain parameters of the EA. I did the backtests on controlpoints of the Mt4, because it is not so time-consuming and nevertheless provides conclusions about probable results on live trading.
It is clear that in real trading the results look different. It was not about the amount of the profits, but about the value and frequency of the drawdowns
At the first look, the number of DDs is not too high, but if you experience a DD of (this example 23%) you have concerns about trading in the near future,
when you think about emotions, the greatest danger for a trader
-In addition, I was able to determine with this study that it is not absolutely necessary to set the DD to 35% !! you can see, in this example, that a DD of 23% is the best ratio of profitability and
number of DDs in this 3-year period. The set files in this example are relatively aggressive. By changing the parameters and doing many, many back tests, the percentage of the DD can be reduced FURTHER
-I hope I was able to give members of this forum an idea of how they can find better settings for this EA (in my opinion)
The search for the best setfiles
IN MY OPINION,
In order to find the best parameters for a setfile, I would like to show how I try to proceed with the backtests.
-I believe that the most important thing in such an EA is the probability / frequency of the drawdowns (DD) that will occur.
-In the picture below you can see that I made a backtest study over a period of 3 years for the pairs GBP NZD and GBP USD, with certain parameters of the EA. I did the backtests on controlpoints of the Mt4, because it is not so time-consuming and nevertheless provides conclusions about probable results on live trading.
It is clear that in real trading the results look different. It was not about the amount of the profits, but about the value and frequency of the drawdowns
At the first look, the number of DDs is not too high, but if you experience a DD of (this example 23%) you have concerns about trading in the near future,
when you think about emotions, the greatest danger for a trader
-In addition, I was able to determine with this study that it is not absolutely necessary to set the DD to 35% !! you can see, in this example, that a DD of 23% is the best ratio of profitability and
number of DDs in this 3-year period. The set files in this example are relatively aggressive. By changing the parameters and doing many, many back tests, the percentage of the DD can be reduced FURTHER
-I hope I was able to give members of this forum an idea of how they can find better settings for this EA (in my opinion)
