[limitup]

Originally Posted by Ken Long

Backtesting works fine on many EA's. Megadroid tests very similar to its real running. Its one of the best ways to test different parameters ans see how they would have worked on past data, and many times it does determine the overall efectiveness of the EA.

Further it is the best and the quickest way to test and see how a new EA runs. This is not a performance test to predict the future, but a style test to see how the EA trades, how it enters and exits trades, how long its usual holding time is, whether it trades in a discernable pattern, whether it trades in a set time period, whether it progresively adjusts its stops and manages a trade, or just puts the trade out there with a stop and target.

You may not like backtesting for yourself, but the limitations you claim are pretty lame. Backtesting is the natural percurser to real time testing. Through a good backtesting 90% of commercial EA's can be eliminated immediately, and save you from wasting your time. Some fail right off because of the ignorant simplicity and limitations in their programing. Its fairly easy to spot an EA that doesnt manage its trades, or that simply runs off an indicator. Others fail simply because they dont fit ones trading style and needs.

L, your attitude is quite condescending and it doesnt really sound like you know what your talking about. Markets are ever changing, yet the patterns constantly repeat. EA's dont trade on fundamentals, they trade on mechanical systems, and these can be tested. A good EA needs to react to and filter price action, and this ability, or lack of it, is obvious in backtesting. Through backtesting its easy to see a simple EA that just runs off an indicator and takes every trade that come in. Its also easy to apply different filters when they are available and see how they affect the trading. This dosent promise perfection but its miles ahead of just putting an EA on an account and running the default program for months.

Backtesting is essential to optimization and systems design, and it is the necessary first step, before forward testing. Otherwise you waste a lot of time and never come near the optimum understanding and running of the program.

Obviously EAs do not trade fundamentals....that is why they loose big in real trading. I made my points very clear. Take it for what it is worth from a experienced trader.