How Do I Read My Expert Advisors (EA) Strategy Tester Report

For me, I will only look at 4 important parameters:

1. Mismatched Charts Errors must be zero (0)

2. The Modelling quality must be 90%

These show that there are relatively no chart errors during the testing of the EA.

3. Total net profit – Am I satisfy with the net profits?

4. Maximal drawdown – Knowing the maximal drawdown enable me to positioning my lot sizes

For example: Initial capital = $ 10,000, Lot sizes during testing is consistent with 0.10, Total net profit =$ 24,034, Maximal drawdown = $ 746

This means if I am able to tolerate the maximal drawdown of up to 30% , which is drawdown of $ 3,000 (balance drop to $ 7,000 out of $ 10,000 initial capital).

P/S: I always look at the how much maximal drawdown I can tolerate first before aiming for the maximal profit I can possibly gain.

Then I can increase my lot sizes to 0.40 lots with $ 10,000 initial capital, which means now:

My EA total net profit will be $ 24,034 x 4 = $ 96,136

And my EA maximal drawdown will be $ 746 x 4 = $ 2,984

With these, I can maximize my EA profits with the maximal drawdown that I can tolerate.

Hope it helps :)

Read more on How to Read Strategy Tester Report – Expert Advisors (EA) Testing

Leave a Comment