Why Forex Back Testing is Important for a Forex EA

Posted by admin on April 11th, 2010 and filed under finance | No Comments »

When testing a currency exchange system, backtesting is exceedingly important, however it’s not the conclusive test for any forex robot. While a backtest shows how the EA would have performed had it been running during the past, the info historic is not fully correct. Similarly, the previous performance doesn’t guarantee future results, thus only a system that’s running live can be confirmed, and even then its future isn’t clear.

What does that suggest for traders like us? It means that selecting a foreign exchange expert advisor isn’t that straightforward and you have to watch out. As an example, there’s a new expert advisor Forex Cash Rocket, and it also show backtesting results. As asserted before, that doesn’t suggest this system will be rewarding. The only way to make a decision is by monitoring its live performance.

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