It’s an uplifting task to test and compare a strategy with Forex EA and then live results. Many factors help to simulate the results, and each factor will be explained in greater detail by this article.
1) In your Forex EA, The Addition Of Delays.
Delay is not a significant factor for backtesting, while delays can predominantly influence live trading. The live data from the server of the broker is delayed by 3-4 minutes, but historical data is stored within 1 minute. While this appears to be a small issue, this latency can have a huge impact on a business’s success and failure.
2) Pick the right Indicator.
The most common trading platforms are charts with 1 minute (M1), 5 minutes (M5), 15 minutes (M15, 1 hour (H1). Standard Channel Indicator (CCI), Relative Stochastic Indicator (RSI) and Bollinger Band (BB) are also the standard trading platforms. For every time frame, a trader must define the appropriate predictor, otherwise, it may be difficult to backtest. A trader shall also take note of conditions overbought and over-sold and check if the value is available in these areas. Once the backtest has been identified, it should be performed on a demo account and moved to live.
3) Five to eight extra stop-loss pipes.
Many brokers have 2 to 5 pipes depending on the currency pair for an offer gap (slippage). This suspension is not included by many of the Forex Advisors and thus reports on live accounts are inconsistent. A further 30 pipes loss at each setup is recommended to eliminate the effect of backtesting. It may also act as a coil during an outbreak of news and mitigate losses during loud movements.
The retrieval process is recursive. The Forex EA must also evaluate and test different criteria and must also be tailored to the necessary changes needed by the strategy. The findings need to be refined. Likewise, check out this website to identify the best risk-reward ratio. After all of these trials with Forex EA, you have to use the technique to live
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