Forex algo software robustness testing
Forex algo software robustness testing lecture is a part of the new course Algorithmic trading strategies Top 10 USDCAD EAs
You can find the complete course discounted here:
https://eaforexacademy.com/courses/algorithmic-trading/algorithmic-trading-strategies-top-10-usdcad-eas/
When trading with expert advisors it is essentially important to test the robustness before we place these on the MetaTrader platform.
What is robustness with the expert advisors?
The robust strategies are those that stand profitably on the market with different parameters in the indicators, with different currency pairs for trading, and they are not optimized for the past historical data.
Normally when we create expert advisors with forex algo software with depends on the past historical data that we export from the broker. The problem is that there is a chance this strategy to be fit on this historical data so the trader will see perfect backtest line.
Usually such strategies are sold over the market as experts advisors and obviously, their purpose is to be sold. What happens when people buy such expert advisors is that they start to lose once they are placed on the platform.
So how do we avoid over optimization with the Forex algo software EA studio?
There are three different robustness tests available in this Forex algo software:
Monte Carlo - this is one of the most popular instruments in algorithmic Trading when it comes to backtesting and performing robustness tests. The Monte Carlo runs a variety of back tests with different indicator parameters, backtesting starting bars, spread variations etc. If the strategy fails with this test it means it was over optimized for the historical data with the parameters that were placed initially.
Walk Forward - this instrument is innovative in the forex algo software and it's still being developed. At the current moment, you can use the Walk Forward validation to recognize the over optimized strategies. It divides the whole historical data into different segments and optimizers on each segment and simulates trading on the next segment. This way if the final result is lower than the original equity line we can say the strategy is over optimized.
Multi Market - with the Multi Market test the Trader is capable of quick testing over the other currency pairs. We want to make sure that the strategy we are trading performs profitably on the other markets. If one strategy loses on other currency pairs and profits only in one currency pair this means that the strategy might be over optimized.
You can test this Forex algo software with 15 days free trial and Ewing this time you can perform such robustness testing with many expert advisors. For this period you can export as many expert advisors as you wish for free:
https://eaforexacademy.com/software/expert-advisor-studio/
You can find the complete course discounted here:
https://eaforexacademy.com/courses/algorithmic-trading/algorithmic-trading-strategies-top-10-usdcad-eas/
When trading with expert advisors it is essentially important to test the robustness before we place these on the MetaTrader platform.
What is robustness with the expert advisors?
The robust strategies are those that stand profitably on the market with different parameters in the indicators, with different currency pairs for trading, and they are not optimized for the past historical data.
Normally when we create expert advisors with forex algo software with depends on the past historical data that we export from the broker. The problem is that there is a chance this strategy to be fit on this historical data so the trader will see perfect backtest line.
Usually such strategies are sold over the market as experts advisors and obviously, their purpose is to be sold. What happens when people buy such expert advisors is that they start to lose once they are placed on the platform.
So how do we avoid over optimization with the Forex algo software EA studio?
There are three different robustness tests available in this Forex algo software:
Monte Carlo - this is one of the most popular instruments in algorithmic Trading when it comes to backtesting and performing robustness tests. The Monte Carlo runs a variety of back tests with different indicator parameters, backtesting starting bars, spread variations etc. If the strategy fails with this test it means it was over optimized for the historical data with the parameters that were placed initially.
Walk Forward - this instrument is innovative in the forex algo software and it's still being developed. At the current moment, you can use the Walk Forward validation to recognize the over optimized strategies. It divides the whole historical data into different segments and optimizers on each segment and simulates trading on the next segment. This way if the final result is lower than the original equity line we can say the strategy is over optimized.
Multi Market - with the Multi Market test the Trader is capable of quick testing over the other currency pairs. We want to make sure that the strategy we are trading performs profitably on the other markets. If one strategy loses on other currency pairs and profits only in one currency pair this means that the strategy might be over optimized.
You can test this Forex algo software with 15 days free trial and Ewing this time you can perform such robustness testing with many expert advisors. For this period you can export as many expert advisors as you wish for free:
https://eaforexacademy.com/software/expert-advisor-studio/
