Need advice, my EA produce $22 Millions in one year?

Hi traders/programmer!
First time I post in this section of forex factory. I'm in here some times reading about different EA's with amazing results backtested. One was billions of dollars I think .

I have always wanted to write such a thing, but never had the time. But yesterday I wrote one of my first EA's

I call it the Reverse stophunter
It's a very simple program, which basiclly buys and sells at round numbers at EUR/USD 1H so I don't want to share it yet.
SL: 15-18 pips
TP: 22-26 pips.

This morning I did a backtest with my baby.
Couldn't believe my eyes... From july 25'th 2008 to july 25'th 2009 it took my $1000 demo account to over $22 000 000... WTF?

I have read several times that backtests don't prove a thing. But it should give an indication of the potential in the method, right?

What kinds of problem could the method experience in the live environment except sudden spread spikes and news?

Is there anyone else who tried something similiar about round numbers? Have they tried it at a live account?

I seek advice here, where the masters of EA's live

http://www.freeforexguides.com/image...stophunter.jpg

Well the control points say in the graph that it is a very crude method... plus the modeling quality is N/A... You may want to search around the forum, there are ways to get 90% modeling quality that would greatly increase the true results of your EA.

Other then that I would advise you to forward test it for a while before putting any serious money behind it.

Well, here are the things I notice...

 

1. Modeling quality N/A. Get as close to 90% as possible.
2. Control points. This is very inaccurate way of representing data.

Another thing I notice is the sudden rise of equity in the back half of the curve. Maybe it's a result of compounding, or maybe it's a result of a highly trending period following a ranging period.

congrats ... impressive for first try ... your win/loss is close to 1:1 and with you sl/tp difference of approx. 7-8pips .. and you made most of the 22m in your last 500 trades ... that makes 44k for let say 8 pips that means 5.5k per pip or you're investing approx 55m per trade? ... everything roughly, is that correct? you must have a very aggressive position increasing ...

Dont EVER trust anything but 90%!! - NEVER!!!

How to get 90% - http://alansforexblog.com/2008/02/27...pert-advisors/
Free Data - http://www.forextester.com/datasources.html

Thanks for all the nice responses! I manged to get 90% modeling quality and the graph looks completely different A complete failure! Interesting how the EA can go from +20 million to - 10 000

I have a very aggressive lots increase, and the sudden graph rise is a result of several winnings in a row.

I have to rewrite this program and see how nice graph I can get.

Another thing to consider is that most OTC retail FX brokers have a trade size limit of 50 to 100 lots per trade. So if trading by EA you may want to cap your max lot size to 50 lots and see what happens. Of course you could open sub accounts at 50 lots each with the same EA in each sub accoutn as well.