Monitoring And Testing Strategies

[Tai]

Hey Guys, Hope you are all doing well? I am currently testing EAs on demo accounts and transferring the successful ones with a profit factor above 1.5 to my live accounts.

I have noticed that the profit factors drop over time OR change entirely based on the date ranges that we put in (using FXBlue as guided in the courses).

I wanted to know what is the best way to manage the EAs when the profit factor on fx blue begins to drop on demo and live accounts?

When you retest a failed EA from a live account to demo (profit factor lower than 1.5 on fxblue), when do you begin retesting the same EA on a demo?

When you finally do retest the same failed EA (from live to demo) do you use the same Magic Number as you did before?

Finally, whether you test in a demo, add to a live account, remove from live account and back to a demo for testing, what date ranges are best to determine these actions (as the profit factor changes on fxblue due to the date ranges).

I look forward to hearing your ideas and thoughts on this, Happy Trading!

[Ilan Vardy]

Hey Tai,

The way I do it, is I look at EA performance in my demo accounts using FX Blue on a weekly basis. If an EA has performed well in the last week AND month, I then transfer it to my live account.  My personal criteria is a profit factor of 1.4 and min. count of trades of 3 for both periods. It’s also important to ensure you keep a balanced portfolio, meaning a number of different assets, and if possible the same quantity of EAs for each, so you manage your risk better. I change my EAs every week on my live account. I close all positions, delete all EAs, then copy the new EAs that I have selected based on the criteria mentioned from my demo accounts to my live account and attach them to new charts. Market conditions change all the time, so EAs that have been profitable, can become unprofitable, and vice versa, so it’s important to analyse and update your EAs regularly.

 

Cheers,

Ilan

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