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PsyQuation EA Backtester

Find out how your strategy is likely to perform in the real world

Tired of losing money trading a strategy that your backtest said was profitable? Access state-of-the-art backtesting driven by the latest academic and industry research to avoid biased and statistically invalid signals.

To get EA Backtester you will need to have a PsyQuation premium account *

Never be Surprisedby Live EA Performance Again

State-of-the-art methodology

Research findings of the world’s #1 expert in finance and machine learning

Simple and illustrative report

The most likely performance, maximum drawdown and PsyQuation Skill Score of your EA in comparison to peers. See sample reports

Artificial Intelligence powered

Machine learning that extracts actionable insights from thousands of backtest runs

Recommendation on EA configuration

Parameters that ensure the best stable performance of your EA

EA Backtester is available for free to PsyQuation Premium members

Cutting-edge
Backtesting Methodology

Our methodology is based on the state-of-the-art findings of Marcos López de Prado. His approach to backtesting proves to be efficient in estimating real viability of trading strategies. We built PsyQuation EA Backtester on it applying machine learning and other sophisticated tools.

Marcos López de Prado is well known in financial world and academia as a top expert in finance and machine learning. He was recognized as “2019 Quant of the Year” for his immense contribution to the adoption of machine learning techniques in finance. Moreover e-library SSRN ranks him as the most-read author in economics.

For more information visit www.quantresearch.org

How is Our Backtesting Different?

Backtests often look unbelievably good just because of lack of proper result validation. It's easy to pick a parameter combination out of thousands of trials that will look amazing by pure chance. The point here is that you must account for the number of trials when judging the significance of the results. Most people do not, and as a result, they think an EA has the edge when all it has is luck, which isn’t worth much if you’re serious about earning money trading.

Imagine someone says to you they can flip a coin 10 tails in a row. You will naturally say no chance. They then show you a video of them flipping 10 tails in a row. What will you say or think now? You probably think they have some superpower. However, there is a simple explanation.


If you flip a coin 1024 times, you are likely to have a hot streak of 10 tails in a row. This probability falls within the natural laws of randomness and hence the video you saw probably skipped all the failed trials and showed the successful one. Doesn’t look impressive anymore, right? Make sure this never happens to your trading strategy.


Marcos López de Prado argued that analysing historical data in relevant period isn’t enough. He proved that it is crucial to consider the number of trials (a trial is a single run of the backtest) which were taken to get a result and that most trials will be very similar to each other and therefore should be treated as one independent trial. 

Expectations vs. Reality

To show you how PsyQuation EA Backtester works, we tested three well–known strategies. Now you can see and compare the EA backtest and how it is likely to perform in the real world.

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Disclaimer:  PsyQuation is a trade mark of PsyQuation Pty Ltd (ACN 604 779 419) and is used under licence by AxiCorp Financial Services Pty Ltd (ACN 127 606 348 and NZBN 9429042567608) who holds an Australian Financial Services Licence (AFSL number 318232) and AxiTrader Limited (Business Company Number 25417 BC 2019). PsyQuation Pty Ltd is a related body corporate of AxiCorp Financial Services Pty Ltd and AxiTrader Limited.


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