How accurate is back test? (For Past Result)

[Amina El Mehdi]

I do not think it is accurate all the time. Sometimes the strategies that perform well in the past may fail to do well in the current trade.

Absolutely. The markets are changing in time.

 

[sebking1986]

Much like looking at the previous results of investing in the stock market it doesn't guarantee future performance but it is also better than going in blind. You either find out your strategy would never have worked or you find that it did and that you can proceed going forward with caution.

 

[liability]

Back test is useful if you keep updating as the time goes forward. That is why many experienced traders use them whenever they are planning to do live trading.

 

[ForexWarrior2020]

Backtesting is key but you have to make sure you're testing in a trending market, consolidating market and volatile market. If you test in a trending market with 70% accuracy it won't be the same in a consolidating one

 

[FriendlyFX]

Its quite effective but still dosen't guarantee that future results will march past ones .
Helps you iron out any links in your strategy though

 

[Granigamand]

Well, theoretically it can be so that some idea didn't work in the past but it is rather efficient in the current market. You can actually test this robot on your demo account and see the results for now. However, I don't think that such trading bots which show negative results on historical data deserve trust. If I were in your shoes, I would look for some other bots.

 

[Toibit]

As far as I'm concerned any sort of back test is useless. Financial markets are complex structures which are not affected by past events.

 

[fxoday]

As far as I'm concerned any sort of back test is useless. Financial markets are complex structures which are not affected by past events.

Yes, it is not guaranteed past performance will same as futures trading performance, however, backtest just like first scanning to find a good trading strategy, the complex forex market is difficult to understand make this financial market product included in the red category, means a trader can lose half or all their investment,

 

[leonventh]

my experience: when i test a few ea, the history trading looks really great but when it comes to real trading then buy'buy my funds xd

 

[fxoday]

There are so many factors that make difference between backtesting with real trading results, server trading, slippage, and disconnecting to server also impact how the robot works because it's like a machine. and the past performance does not guarantee the same result in the future.