ExpertCodeFX

Backtesting guide

How to read EA and
cBot backtest results

A profitable curve is only the start. A useful review combines return, drawdown, trade count, costs, test period and broker assumptions.

Backtest balance and equity curve

Core figures

Read the numbers together

ROINet profit ÷ startReturn relative to starting balance
Profit factorGross wins ÷ lossesAbove 1 means wins exceeded losses in the test
Trade countSample sizeMore trades can make the result more informative
Testing periodMarket coverageInclude different volatility and trend regimes

Risk matters

Balance and equity drawdown are different

Balance drawdown uses closed results. Equity drawdown also includes floating profit and loss, so it can reveal risk hidden inside open positions. When both are available, assess the larger and study when it occurred.

Balance drawdownClosed-account declineEquity drawdownIncludes open P/LDaily lossSeparate prop-style testRecoveryTime and return required

Quality checklist

Questions to ask before trusting a test

Was realistic tick data used? Are spread, commission and swaps included? Does the period cover quiet, trending and volatile markets? Is position sizing fixed or compounding? Does one short period produce most of the profit? Are the complete report and trade history available?

IC Markets exampleComplete cTrader report, event ledger, parameters and 1,073 tradesFxPro exampleSearchable 2,292-trade history with broker costs and drawdownMT5 exampleTester workbook, verified dates and equity graph

Backtests are not forecasts

A historical simulation cannot reproduce every live condition and does not guarantee future performance. Forward-test on demo, verify broker execution and start with conservative risk.