Back Testing Results
We would like to begin by noting that we are not strong advocates of backtesting, and here’s why. Backtesting can sometimes present misleading information, particularly when conducted on platforms like MT4. Many expert advisor (E/A) vendors showcase impressive backtesting results on their websites, yet these often fail to translate into success during live trading. In this context, we will present our own backtesting data, which may appear reasonable at first glance. However, we urge you to approach it with caution. While the results are largely accurate, we must address the 'Drawdown' figures in our reports. To be transparent, these figures are not entirely realistic.
That said, our actual drawdown is not as severe as it might seem, and we invite you to review the accompanying performance metrics on our 'Home Page', to substantiate our claims. We encourage you to exercise discernment when evaluating claims on other websites, as some may not provide a fully transparent picture.
Upon reviewing the backtesting results, you'll notice that it indicates a drawdown of 40.24% for the (GBP/USD). However, this figure is clearly inaccurate. For example, the largest recorded loss is -$114.12, and the combined total losses across 15 trades amounts to -$1154.93. Please note the average loss is stated to be -$15.67. We would like to mention that on the "Profits" side, this data information is quite different. As the largest recorded win is $719.36, with a combined total gain across 8 trades amounts to $1790.01 with an average win of $11.66.
Please note that the total profits include earnings from FX-Infinity V3.1 across both GBP/USD and XAU/USD trading pairs. Specifically, the GBP/USD trades generated $14,744.29, while XAU/USD trades contributed $11,453.70, resulting in a combined total profit of $26,499.86 over the course of just three years.
Since this E/A relies primarily on two major pairs—namely GBP/USD and XAU/USD—functioning in tandem, we will also provide results for the XAU/USD pair.
Upon reviewing the backtesting results, you'll notice that it indicates a drawdown of 27.39% for the (XAU/USD). However, this figure could be inaccurate, but not as much as our (GBP/USD) testing. For example, the largest recorded loss is -$194.68, and the combined total losses across 12 trades amounts to -$1636.08. Please note the average loss is stated to be -$16.65. We would like to mention that on the "Profits" side, this data information is quite different. As the largest recorded win is $807.84, with a combined total gain across 19 trades amounts to $1851.76 with an average win of $7.81.
It is also a well known fact if your E/A has a "News" filter in place, then MT4, cannot handle the data correctly to take this part of the system in place.
This highlights a common issue with backtesting. The results can often be misleading and are not always a reliable reflection of real-world performance. Additionally, it's worth noting that some vendors may manipulate backtesting data to present more favorable outcomes.
We are committed to transparency and accuracy in our reporting—it's unfortunate that the backtest results do not reflect that same standard.
That said, our actual drawdown is not as severe as it might seem, and we invite you to review the accompanying performance metrics on our 'Home Page', to substantiate our claims. We encourage you to exercise discernment when evaluating claims on other websites, as some may not provide a fully transparent picture.
Upon reviewing the backtesting results, you'll notice that it indicates a drawdown of 40.24% for the (GBP/USD). However, this figure is clearly inaccurate. For example, the largest recorded loss is -$114.12, and the combined total losses across 15 trades amounts to -$1154.93. Please note the average loss is stated to be -$15.67. We would like to mention that on the "Profits" side, this data information is quite different. As the largest recorded win is $719.36, with a combined total gain across 8 trades amounts to $1790.01 with an average win of $11.66.
Please note that the total profits include earnings from FX-Infinity V3.1 across both GBP/USD and XAU/USD trading pairs. Specifically, the GBP/USD trades generated $14,744.29, while XAU/USD trades contributed $11,453.70, resulting in a combined total profit of $26,499.86 over the course of just three years.
Since this E/A relies primarily on two major pairs—namely GBP/USD and XAU/USD—functioning in tandem, we will also provide results for the XAU/USD pair.
Upon reviewing the backtesting results, you'll notice that it indicates a drawdown of 27.39% for the (XAU/USD). However, this figure could be inaccurate, but not as much as our (GBP/USD) testing. For example, the largest recorded loss is -$194.68, and the combined total losses across 12 trades amounts to -$1636.08. Please note the average loss is stated to be -$16.65. We would like to mention that on the "Profits" side, this data information is quite different. As the largest recorded win is $807.84, with a combined total gain across 19 trades amounts to $1851.76 with an average win of $7.81.
It is also a well known fact if your E/A has a "News" filter in place, then MT4, cannot handle the data correctly to take this part of the system in place.
This highlights a common issue with backtesting. The results can often be misleading and are not always a reliable reflection of real-world performance. Additionally, it's worth noting that some vendors may manipulate backtesting data to present more favorable outcomes.
We are committed to transparency and accuracy in our reporting—it's unfortunate that the backtest results do not reflect that same standard.
The Following Is A Backtest Of (GBP/USD) On The M1 Timeframe, Using A Lot Size Of 0.01 And An Initial Equity Of $10,000.
The Following Is A Backtest Of (XAU/USD) On The M1 Timeframe, Using A Lot Size Of 0.01 And An Initial Equity Of $10,000.
Regarding backtests, it is common to encounter results like the one below on many E/A vendors websites. For example, we came across a claim of generating over $22 million in 8 years. However, it is important to consider this critically, if such results were genuinely achievable, why would the vendor not use this system on their own live accounts? The simple answer is that the accounts would likely fail, which is why such extraordinary claims are rarely, if ever, demonstrated in practice. We are sharing this as a general cautionary note and are not naming any specific parties.
