Why Backtesting is Important for a Forex System
When testing a currency exchange system, back-testing is very important, however it isn’t the conclusive test for any forex robot. While a backtest shows the way in which the robot would have performed had it been running in the past, the information historical is not completely accurate. Similarly, the previous performance doesn’t guarantee future results, so only a system that’s running live can be confirmed, and even then its future is not clear.
What does that imply for traders like us? It suggests that selecting a forex EA isn’t that easy and you have got to take care. As an example, there’s a new robot Forex Cash Rocket, and it also show back testing results. As announced before, that does not imply this system will be profitable. The only possible way to pick a choice is by monitoring its live performance.