This text explains how customers can consider AOT conduct via completely different backtesting approaches. The objective is to assist customers perceive how varied configurations have an effect on buying and selling conduct and drawdown traits.
1. Uncooked Take a look at
On this take a look at, the target is to watch the core conduct of AOT below strict and simplified circumstances.
- Use a hard and fast lot dimension.
- Disable the restoration operate.
- Enable just one open commerce per image at any given time.
After working the take a look at, overview the statistical knowledge for the interval earlier than the EA launch and evaluate it with newer market circumstances. This helps determine how the technique logic behaves throughout completely different market environments.
Set file used for this take a look at:
Fixed_lot_size_test.set (connected file)
2. Scaling Lot Dimension Take a look at
This take a look at demonstrates how AOT behaves when utilizing dynamic place sizing.
- Allow auto-scale lot dimension mode, the place the lot dimension adjusts relative to account steadiness.
- Allow the restoration operate.
- Use the Dwell set file, which is similar configuration utilized on stay sign accounts.
This strategy permits customers to watch how place scaling and restoration logic have an effect on publicity and drawdown over time. Customers ought to at all times backtest utilizing their very own account steadiness and most well-liked timeframe.
Comparability and Key Issues
A comparability between these assessments exhibits that even when the identical technique logic is used, completely different configurations and danger preferences can result in noticeably completely different conduct and efficiency metrics.
A very powerful metric to concentrate on is drawdown. Earlier than making use of any configuration on a stay account, customers ought to clearly perceive the potential drawdown traits related to that setup.
AOT must be seen as a technical buying and selling software. Its effectiveness relies upon closely on how it’s configured and managed by the person. Necessary components to contemplate embody:
- Correct danger administration
- Understanding the strengths and limitations of the EA
- Danger diversification
- Sustaining real looking expectations
Backtesting stays an important step for evaluating whether or not a particular configuration is appropriate for a person buying and selling setting and danger tolerance.
