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Create and Test Forex Strategies

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The Report page shows more detailed information of the backtest of the currently loaded Expert in the Editor.

The page consists of four tabs: Stats info, Indicator char, Balance chart, Transactions log

Stats info

Stats info

Output parameters

Output parameter panel shows the values of all statistical parameters calculated by the backtesting engine of EA Studio.

  • Net balance - the end amount in the trading account. The Net Balance is measured in the account's currency.
  • Max drawdown - the reduction of the account after a series of losing trades. This is normally calculated by getting the difference between the previous account peak minus the lowest following bottom. The drawdown is shown as a percentage of the trading account.
  • Executed orders - this is the number of executed transactions. Please note that the opening and the closing transactions are counting separately.
  • Ambiguous bars - the program marks a bar as 'Ambiguous' when the historical data doesn't contain complete information for the sequence in which the program has to execute the orders. It may happen when Stop Loss and Take Profit are close to each other in the range in the same bar. In such cases EA Studio always makes a safe (pessimistic) guess .
  • Profit per day - an average of the money gained by the strategy per day.
  • Win/loss ratio - calculated by dividing the count of the winning trades by the count of all trades.
  • Sharpe ratio - measures the risk-adjusted return. The higher the Sharpe ratio is, the better the Expert is.
  • Average HPR - shows the average return received from holding an asset or portfolio of assets over a period of time, expressed as a percentage.
  • Profit factor - the dollar amount the strategy made for every dollar it lost.
  • System Quality number - the SQN number was studied by Dr Van Tharp. He found that the higher the SQN is, the better the trading system is.

Indicator chart

Indicator Chart

The Indicator chart shows the price bars, the indicators and the signals and the positions.

Trailing Stop Loss on the Indicator Chart

Trailing Stop Loss will show on the Indicator Chart whenever it is defined in the Strategy Properties.

Balance chart

Balance chart

The chart shows the balance line and the equity lines produced by the backtest.

Transactions log

The Transaction Log shows all trades made by the strategy during the backtest. It is useful to examine the exact entry/exit time and prices and to compare them with a backtest of an exported Expert Advisor in MetaTrader. The EA Studio backtest and the MetaTrader backtest must show very similar results. The main reason for differences might be that either the testing historical data is different from the one the MetaTrader uses or the historical data has a different Time zone. In both cases, you cannot rely on that strategy for real trading.

Additionally please note that if a strategy is over-optimized, even the smallest difference in the data or in the trading conditions will create very different results.