BackTesting an EA

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Hi Everyone,

Just wanted to know out of interest what everyones thoughts are on drawdown when backtesting an EA. What would you say is a good drawdown. What would you say is to high?

Im testing on the 1HR TF

Cheers

 

I prefer max drawdown of 10% or below and profit factor of at least 1.4. If max drawdown is low, we can compound the earnings and get rich sooner (say $10M in 5 years and $100M in 10 years).

 

So have you got an EA thats this succsesfull?

Ive got a programmer helping me write an EA for my trading system that seems to work for me. so far the EAs not working properly but hes still coding. One of the versions seemd okay it was getting about a 16% drawdown cant rember the profit factor i think it turned 10K into about 40K in a year with 1 lot trades. Obviously if it were running in real time I would compound, But it was putting alot of trades in against the indicator. i.e the indicator said sell but the EA placed a buy. Just hope he can get it to work as well as the manual system.

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