When backtesting an EA what do you look for to qualify it as good? Win ratio? Drawdown? Profit factor?
Is a profit factor of 1.37 good? bad? ugly?
Is a profit factor of 1.37 good? bad? ugly?
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Default Bounds, whats this 3 replies
DislikedWhen backtesting an EA what do you look for to qualify it as good? Win ratio? Drawdown? Profit factor?
Is a profit factor of 1.37 good? bad? ugly?Ignored
DislikedThe smothness of the curve and the drawdown in relation to the profit it made. But be careful: the backtester doesn't plot or otherwise record the drawdown that happens between two trade closings.
The curve should contain several hundred (better thousands) of trades during at least half a year, everything less than that is not statistically relevant in any way.
Often i see people posting profit curves consisting of only 5 or 10 trades. This is absolutely ridiculous. A simple coin flip could produce the same curves after just a few tries, even...Ignored