Backtesting And Optimization Support
BananaEA can be tested in MT4 Strategy Tester and can be optimized by changing input ranges.
Backtesting is a historical simulation. Optimization is a comparison of historical input combinations. Neither one guarantees live results.
What Backtesting Is For
Use backtesting to check:
- Whether the EA runs without errors.
- Whether settings load correctly.
- Whether stop loss and take profit behavior looks correct.
- Whether trade frequency is reasonable.
- Whether spread and broker assumptions are suitable.
What Optimization Is For
Use optimization to compare selected input ranges.
Good practice:
- Optimize only a few meaningful settings.
- Use realistic ranges.
- Keep a separate out-of-sample period.
- Review the top group of results, not only the top row.
- Forward test on demo before live use.
What To Avoid
Avoid:
- Optimizing every input.
- Choosing settings only because they had the highest historical profit.
- Using unrealistic spread or commission.
- Testing only a favorable market period.
- Treating one backtest as evidence of future performance.
Metrics To Review
Review metrics together:
- Net result
- Drawdown
- Profit factor
- Trade count
- Average trade
- Consecutive losses
- Out-of-sample behavior
These are review tools, not sales claims.