Is there any rule to protect user from fake backtest?

[Sky All]

Dear experienced traders

Do you know is there any rule to protect user from fake backtest? 

As these days learning, I find that it seems possible to make fake backtest. 

Does MQL5 check code before the product sell in the market? 

Is there any rule related to fake backtest? 

Thank you in advance and best wishes

[Enrique Dangeroux]

Define "fake back test".

[Sky All]

Enrique Dangeroux:
Define "fake back test".

Hide/ limit lost trade by individual trade. 

[Carl Schreiber]

If a user downloads a program from a market he can run backtests on his own. Why should he fake it? This way he can see whether a program provides what it promises or not.

[m1213]

Sky L:

Dear experienced traders

Do you know is there any rule to protect user from fake backtest? 

As these days learning, I find that it seems possible to make fake backtest. 

Does MQL5 check code before the product sell in the market? 

Is there any rule related to fake backtest? 

Thank you in advance and best wishes

I wouldn't say fake backtest and rather call it an advertising trick. They use "highly over-optimised set of parameters" to get the best profit-SR from backtest and anybody can easily fall for this with probable future potential. The only way to trust is if their backtest result match with that EA's live signal and that's extremely rare! The very volatile nature of FX market means, these "highly over-optimised parameters" are useless for the week next or over a month with diminishing return! The trick is to 'be dynamic' and develope one's own strategy and minimise losses by adding more filters and/or conditional code logic, as required!

[Fernando Morales]

Enrique Dangeroux:
Define "fake back test".

For example a starting point, consider "fake" a backtest if:

- Max DD is lower than 10%

- Win/Loss ratio is larger than 70%

- Profit Factor is larger than 5

[Keith Watford]

Comments that do not relate to this topic, have been moved to "Off Topic Posts".

[lippmaje]

Keith Watford:

Comments that do not relate to this topic, have been moved to "Off Topic Posts".

It would be helpful to bump the Off Topic thread to the queue top, this does not seem to happen when it's edited by a moderator.

[Sky All]

Carl Schreiber:
If a user downloads a program from a market he can run backtests on his own. Why should he fake it? This way he can see whether a program provides what it promises or not.

Thank you so much, Carl. 

I'm just wondering criminal can make advertising trick by program. 

They can hide/ limit lost trade by individual trade, but customer will never know that... 

[Sky All]

m1213:

I wouldn't say fake backtest and rather call it an advertising trick. They use "highly over-optimised set of parameters" to get the best profit-SR from backtest and anybody can easily fall for this with probable future potential. The only way to trust is if their backtest result match with that EA's live signal and that's extremely rare! The very volatile nature of FX market means, these "highly over-optimised parameters" are useless for the week next or over a month with diminishing return! The trick is to 'be dynamic' and develope one's own strategy and minimise losses by adding more filters and/or conditional code logic, as required!

Yes and thank you so much. 

Advertising trick is more suitable. 

My words was rude. 

[Sky All]

Fernando Morales:

For example a starting point, consider "fake" a backtest if:

- Max DD is lower than 10%

- Win/Loss ratio is larger than 70%

- Profit Factor is larger than 5

Thank you so much, Fernando. 

I learned a lot from you.