Expert Testing and Analysis Guide – Miscellaneous – February 7, 2024

adminFebruary 7, 2024

Expert Testing and Analysis Guide

introduction

If you want to use experts, you need to be able to analyze them. On this page, I would like to analyze some experts as cases. First, we will check through backtesting and then analyze real-time trading results.
Backtesting reveals exact details about an expert’s performance. What capital management strategies do experts use, how many dollars is the minimum capital required to use them, which brokers are they available for, what is the minimum leverage amount, what are the best risks and settings to implement them, etc. Take a look. It shows DD amount, profit, win rate and many other information.

Review and analysis1

You can then use the results of the expert’s execution in real time to see how the expert works. Surely you are asking yourself. When we know the backtest results, why should we also check the real-time results? The answer is simple. Foreign exchange market patterns are constantly changing. Therefore, backtesting by technical experts does not guarantee actual results. Therefore, we can use real-time results to ensure that expert patterns are new, that experts are based on up-to-date methods, and that their strategies are not yet outdated.

Review and Analysis 2

Check the backtest using MetaTrader 5. MetaTrader 5 has more features than MetaTrader 4. Also, in the future I would recommend using MetaTrader 5 to check out the pros. We also conduct live analysis using results, charts, and data provided by the TradingView site. for example “Candle EA MT5If you have any comments or suggestions, I’d be happy to share them with you.

Backtest results

First, we need to set up the initial settings for our test. These settings are different from the expert’s default settings. Here we specify the settings of currency pairs, time periods, etc. according to the picture.

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Then you will see the expert settings in the input section. We use the default settings. The default settings are generally best for experts. The risk was set at 5% to guarantee the outcome of the trade.

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Then run the test and see the results in the graph.

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The most important part of testing is the backtesting part. You will find useful and complete information in this section.
This explains some of the most important parts of the photo.

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1- In order from the top: Amount of initial capital, Amount of capital after testing, Amount of profit earned. In other words, the second number is the most important number, showing that your capital has changed from $10,000 to $17,274,000.

2- In the second part, you can see the maximum DD amount of your balance. In other words, this test shows that the maximum amount your capital can be reduced is only 0.33%. It’s not even 1%. The lower this number indicates that experts are not using risky strategies and are completely safe. A DD amount of less than 5% is perfect.

3- This number is the same as the previous number and represents the amount of capital reduction in progress. The lower this number, the better.

4- This number represents your odds of winning. These numbers show that out of 100 trades, 86 closed at profit and the rest closed at limit loss. The higher this number, the better. If R/R is 1, any number greater than 55% is good.

Real-time results

Now it’s time to see real-time results. Every expert’s actual results will be slightly different from the backtest. This is because patterns are constantly changing. So don’t expect Expert to work exactly like Backtest in the future. We ran a variety of experts with different setups across multiple accounts (live). You can see the results below. For example, let’s check one of them out together.

1- Shows the amount of profit earned. After testing Expert live, Expert gave us a 38% return.

2- The initial capital amount and the capital amount at the end of the test are displayed. Initial capital: $10,000. Capital at end of test: $13,800

3- Shows the odds of winning. As you can see, the win rate for buy and sell transactions is 100% in this test.

4- This diagram shows the overall diagram of the test. In this chart you can see the test duration and DD amount. As you can see, the DD value is almost 0.