Back/Live Testing Consistency

One of the most important aspects when doing 10 year long simulations and testing a system on a live account is to establish the validity of the simulations by running a live/back testing consistency test. To do this we simply run a simulation for a period in which we have live testing results and we compare the gains/loses as a function of time side by side so that we can gauge if there is a general match or a total mismatch between our live testing data and our backtesting data. Of course, there may be some negative/positive differences between back and live testing results due to broker differences (such as the existence of Sunday candles and the general differences in feeds) . However the overall match or mismatch allows us to know the overall accuracy of our simulations and to validate our ten year simulation results for a particular broker's performance, making the profit and risk targets, adaptability and other characteristics of a trading system in fact realistic assumptions.

Watukushay FE was evaluated for live/back testing consistency from Dec 30/2010 to May 10/2010 after almost 5 months of live testing. June was not included (since at the time of the evaluation demo data feed corruption did not allow to do an accurate simulation of this month) but it will be included once this analysis is repeated in December to do a FULL year back/live testing consistency analysis. The best thing is that you CAN do this analysis yourself ! Simply log into the live account (shown on the tests page) using the investor access, save all the history and do a back test of a period you would want to evaluate using the same settings (remember that the live account uses a Risk level of 3). The results of the live/back testing consistency analysis are shown below :
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As you can see, the FXClearing results show a global match with the backtesting results letting us know that the Watukushay FE trading system IS back/live testing consistent and validating our ten years of simulation results. This shows effectively that the current profit and draw down targets are indeed realistic and that the market adaptation done by the EA through its ATR usage does work in the long term.

Therefore, Watukushay FE is now the trading system with the MOST honest and transparent evidence of long term profitability available online. There is NO other expert advisor that shows you more than 6 months of live testing on an investor access verified myfxbook account, 10 years of backtesting data AND a LIVE/BACK testing consistency analysis validating the very long term simulations done on the EUR/USD. Of course, the results of this section will be updated as the EA continues to trade showing back/live testing consistency analysis of the EA over longer periods of time. The next analysis will be done in Jan-2011 for the first YEAR of live trading results.