Do people really see Crazy gains?
Hi,
I have been trading forex for like a month (not long enough to make any assessment of my trading ability) and I have been messing around with EA's and doing stratagy tester on them and some of them get unrealistic gains in the stratagy tester for backtesting (like turning 10k into 100k in a year) and I was wondering if that kind of gain is really common in forex or is that just a common lie to get people to try your EA, Beacuse if I had an EA that could multiple my money by 10 times every year I wouldn't tell anyone, I would use it to become very very very rich. But yet i see people talking about their crazy gains that they got with their EA and I was wondering if anyone has actually seen gains like that from an EA and if they have, is it really as common as people make it out to be?
I think you already know the answer :)
Crazy gains tend to happen due to:
- Over-fitting a system for a certain set of data (hopefully unintentionally)
- Carrying an unacceptably high risk, where drawdown will normally wipe out the account at some point (fairly soon)
- Errors
- Exaggeration
Although, it depends upon what you categorize as "crazy". The systems I have written are currently making crazy gains when compared to what you'd get from the banking industry and most hedge funds. But they are fairly pedestrian, I'm sure, when compared to some "holy grail" EAs.
CB
Hi,
I have been trading forex for like a month (not long enough to make any assessment of my trading ability) and I have been messing around with EA's and doing stratagy tester on them and some of them get unrealistic gains in the stratagy tester for backtesting (like turning 10k into 100k in a year) and I was wondering if that kind of gain is really common in forex or is that just a common lie to get people to try your EA, Beacuse if I had an EA that could multiple my money by 10 times every year I wouldn't tell anyone, I would use it to become very very very rich. But yet i see people talking about their crazy gains that they got with their EA and I was wondering if anyone has actually seen gains like that from an EA and if they have, is it really as common as people make it out to be?
How many truly rich people that you know tell everyone they know that they are rich?
I rest my case.
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Hi,
I have been trading forex for like a month (not long enough to make any assessment of my trading ability) and I have been messing around with EA's and doing stratagy tester on them and some of them get unrealistic gains in the stratagy tester for backtesting (like turning 10k into 100k in a year) and I was wondering if that kind of gain is really common in forex or is that just a common lie to get people to try your EA, Beacuse if I had an EA that could multiple my money by 10 times every year I wouldn't tell anyone, I would use it to become very very very rich. But yet i see people talking about their crazy gains that they got with their EA and I was wondering if anyone has actually seen gains like that from an EA and if they have, is it really as common as people make it out to be?