Why Backtesting is Important
When testing a foreign exchange system, back testing is extremely important, however it’s not the decisive test for any foreign exchange robot. While a backtest shows the way in which the robot would have performed had it been running in the past, the information historic is not completely correct. Additionally, the previous performance doesn’t guarantee future results, so only a system that is running live can be confirmed, and even then its future isn’t clear. What does that imply for traders like us? It suggests that choosing a forex EA isn’t that simple and you’ve got to be cautious. As an example, there is a new expert advisor Forex Cash Rocket, and it also show back-testing results. As asserted before, that does not imply this system will be rewarding. The only possible way to make a call is by monitoring its live performance.