Using MT4: Is Strategy Testing Proportional?

I understand all strategies are different and all accounts will have to adjust strategies according to risk, investment, and overall goals. I am currently starting to testing a few different automated strategies in MT4.

In my mind I would think settings to grid levels, s/l, and t/p would be proportional.. Is this true? Why or why not? Thanks for the help in advance.

RogueFX

I would like to help but not sure what exactly you mean.

I will guess at what you want to know. The accepted term is Risk to Reward or the Risk/Rewand ratio or R:R. I believe that you can change this ratio and achieve a higher win rate. I have one scalping EA that I normally run at 4:1 and it wins roughly 75 to 80 percent of the time. If you do the math, you will realize it loses money in the long run. I have played with other ratios. Once I ran it at 7:1 and got nearly 90% wins including one streak of 29 straight wins. It seems to be more profitable at this ratio. I think if I reduced it to 1:1 my win rate would drop below 50% because then the spread would be greater proportional to my stop level which makes it more likely to be hit.

The many robots on the market seem to bear this observation out. Many of them run at 10:1 and brag of win rates > 90%. They still are money losers, but buyers are encouraged because they sometimes see incredible numbers of consecutive winners. Its all comes back to basic math. If it doesn't make sense mathmetically it probably won't be worthwhile.