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VIDEO #4: Fabricated backtest results

Discussion in '5 Forex Scams Used in EAs, Indicators and Signals' started by Ea-Coder, Dec 12, 2016.

  1. Ea-Coder

    Ea-Coder EA-Coder.com Representative

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    SCAM #3: Fabricated Backtest Results

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    How to know if MT4 backtest is done properly:
    1) Check backtest “type” and “modeling quality”. It should be performed using “Every tick” modeling type with a 99% modelling quality.
    2) Check what spread value was used during the test: fixed or variable spread. If modelling quality is anything but 99% then a fixed spread was used and backtest is likely not very accurate.
    3) Look how many “mismatch errors” it has. It should be zero.
    4) Look at the time period of the backtest and trade amount. It should be around 10 years long or have at least 100-200 trades (actually trade amount is more important here for statistical significance).
    5) Check if modelling type and quality from the backtest report matches with the graph.

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    - Rimantas Petrauskas
    The secret behind successful Algotrading is
    managing a portfolio of many automated strategies.

    Rimantas Petrauskas >>



    5 Forex Scams Used by Providers of EA, Indicators and Trading Signals video series created by Rimantas Petrauskas - algorithmic Forex trader, programmer and creator of many MT4 Apps.
     
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  2. Pharaoh

    Pharaoh Colonel

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    So I'm not going to get rich off of that super EA which was backtested at 90%? :(
     
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  3. Ea-Coder

    Ea-Coder EA-Coder.com Representative

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    Probably not :)
     
  4. marcesimas1972

    marcesimas1972 Recruit

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    Thank you Rimantas.
    Always very useful and easy to get.
    Best!
     
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  5. Ea-Coder

    Ea-Coder EA-Coder.com Representative

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    Thanks ;-)
     
  6. CryptoatForex

    CryptoatForex Recruit

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    Very useful thanks.
     

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