To Optimize or not to Optimize ? … The winalot and EAzeGor expert advisors

If you have been reading my blog recently you may have read my reviews on the winalot and EAzeGor expert advisors made by the easy-ea company. You may have noticed that both of these reviews had a quiet favorable tone to them because I think both of this experts fulfill a good chunk of my criteria for a long term profitable expert advisor. However, I did say in both cases that backtesting from 1999 was missing and that such testing would be necessary to assess long term profitability.

After requesting backtesting results from 1999 the company answered that they did not have such tests because experts were optimized on an 18 month basis and were then traded in optimized settings. This is obvioulsy the reason why such limited backtesting is available on their website, because of course, they cannot show further backtests if settings are bound to change on the middle of the expert’s testing.

Now, the big question arises. Is this good or is this bad ? To optimize or not to optimize ? Well, I of course always favor expert advisors that can self adapt to a certain extent like the god’s gift ATR because even though there is an inherent lag in the adaptation, the lag is less than 30 days long and the expert just worries about aligning itself against market conditions. Optimization using 18 months of data could also be a strategy you could use, however, it has to be said that if market conditions for the next 6 months are very different from the past 18 months, then the system is likely to fall into draw down but then, it might realign once optimization is done again. The live testing done on both experts confirms at the moment that this optimization strategy works albeit on the changes happening during the past year.

Given this fact, the fact that considerable live testing exists and the fact that the expert advisor’s trading style fits many characteristics I demand from profitable trading systems I will say that this experts are worth testing. From next Sunday a demo account will be opened and the testing of the winalot EA will start with testing results being commented each week on my weekly newsletter. Susbcribers should also expect the next newsletter to include demo account investor access information.

If you would like to learn more about automated trading systems and what the necessary characteristics for a profitable trading systems are (and why most commercial experts out there just fail bluntly) please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed this article !

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