What is back-testing
Before deciding to trade with an Expert Advisor, it’s always a good idea to back-test it.
Backtesting is a method of analyzing how well a trading strategy could perform by applying it to historical real-world data. It allows you to compare different strategies and select the one that delivers the best results.
The principle behind backtesting is that strategies that worked well in the past are likely to perform similarly in comparable market conditions in the present and future. By testing trading plans on historical datasets that closely match current market environments, you can evaluate their performance before placing actual trades.
However, it’s essential to remember that backtesting does not guarantee success in live markets. Past performance is not a foolproof indicator of future results.
Backtesting is just one part of conducting thorough research before entering a trade. It helps you understand the potential volatility of an asset and take steps to manage your risk effectively.
It’s also important to note that real trades involve fees, which may not always be accounted for in backtesting. Factoring in these trading costs during simulations is crucial, as they can significantly impact the profit-loss margins on a live trading account.
That’s why we constantly back-test all of our Expert Advisors using real tick data and 100% accurate trading history.
Here are links to up to 10 years of backtests for all of our EAs: