Create and Test Forex Strategies
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eas-guide:acceptance-criteria [2018/01/10 09:39] – yavor | eas-guide:acceptance-criteria [2018/02/01 14:33] – yavor | ||
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===== Introduction ===== | ===== Introduction ===== | ||
- | The **acceptance criteria** are widely used in EA Studio (in the [[eas-guide: | + | The **acceptance criteria** are widely used in EA Studio (in the [[eas-guide: |
- | The acceptance criteria | + | EA Studio applies the acceptance criteria to the backtest result stats. There are three zones of the backtest the acceptance criteria applies to (see the picture below) |
* Complete backtest | * Complete backtest | ||
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{{: | {{: | ||
- | If we have Out of Sample | + | If we have OOS enabled all three zones will be used. |
- | If Out of Sample | + | If OOS is disabled only the first (Complete backtest) part will be used. |
{{: | {{: | ||
- | Acceptance | + | The acceptance |
<WRAP center round tip 60%> | <WRAP center round tip 60%> | ||
- | If you find a strategy with the Generator that you like you can set the acceptance criteria so the generator will find similar strategies. Just go to the **Strategy > OOS Monitor** and see the results of the backtest. Then enter them in acceptance criteria settings. For example if you liked a strategy that has a drawdawn of 8% in the acceptance criteria settings enter a number that is a little | + | If you find a strategy with the Generator that you like you can set the acceptance criteria so the generator will find similar strategies. Just go to the **Strategy > OOS Monitor** |
</ | </ | ||
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**Reset** - resets the acceptance criteria for this zone of the backtest to it's default values. | **Reset** - resets the acceptance criteria for this zone of the backtest to it's default values. | ||
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===== Acceptance Criteria Metrics===== | ===== Acceptance Criteria Metrics===== | ||
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==== Minimum backtest quality % ==== | ==== Minimum backtest quality % ==== | ||
- | EA Studio backtesting engine is very fast because it operates with bar data. Very rarely however this leads to ambiguities in trading decisions. For example if there are protections like Stop Loss or Take Profit it might be important if the price went to bar' | + | The EA Studio backtesting engine is very fast because it operates with bar data. Very rarely however this leads to ambiguities in trade execution. For example if there are protections like Stop Loss or Take Profit it might be important if the price went to bar high or bar low price first. For such bars the backtest engine cannot |
==== Maximum balance deviation ==== | ==== Maximum balance deviation ==== | ||
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==== Maximum count of trades ==== | ==== Maximum count of trades ==== | ||
- | Set the maximal number of trades to make sure the strategy is not over-optimized. Also trade less often to avoid losing money on the spread. | + | Set the maximal number of trades to make sure the strategy is not over-optimized |
==== Maximum equity drawdawn % ==== | ==== Maximum equity drawdawn % ==== | ||
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==== Minimum count of trades ==== | ==== Minimum count of trades ==== | ||
- | Defaults to 100. At least that much trades | + | Defaults to 100. This means the strategy should make at least 100 much trades in the backtest. This is important for the Generator and Optimizer in order for their backtest |
==== Minimum net profit ==== | ==== Minimum net profit ==== | ||
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==== Minimum profit per day ==== | ==== Minimum profit per day ==== | ||
- | The strategy should make at least this amount per day in your account' | + | The strategy should make at least this amount per day in your account' |
==== Minimum profit / drawdawn ==== | ==== Minimum profit / drawdawn ==== | ||
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Shows how stable the profits are over time. Imagine we have a strategy with **minimum months of profit** equal to 60%. This means that if the strategy backtest was for 10 months of trading we can see that the strategy was profitable for 6 months and in the other 4 months it didn't make any profits. | Shows how stable the profits are over time. Imagine we have a strategy with **minimum months of profit** equal to 60%. This means that if the strategy backtest was for 10 months of trading we can see that the strategy was profitable for 6 months and in the other 4 months it didn't make any profits. | ||
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+ | ~~DISQUS~~ |