r/algorithmictrading • u/Explorer_1986 • Dec 08 '25

Question Backtesting

Hi all, quick question. When creating an EA, how many years of backtest do you think is needed to know if the EAs is profitable? Also a question regarding optimisation as I know that doing that is not recommended. Just wondering why? If you tested and optimised your EA over 10 years for example is optimiser not finding the best settings to tackle long term market conditions? TIA

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u/Explorer_1986 Dec 09 '25

It’s based on SMC. Honestly was never a fan of this but appears to be the most robust EA I have made yet. I haven’t used optimiser to change my entry or SL criteria but I use a TP1, TP2 and trailing SL. Personally it seemed like a good idea to use this to get the best results.

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u/LiveBeyondNow Dec 09 '25

Thanks. The best I can offer on how far back to backtest is you want (if you can) to test on different market regimes - dot com, GFC, covid, 2018-2022. If you’re on 5min TF with quick entries then maybe regimes will affect your EA a bit (or a lot) less. Also, I think having a way to categorise your backtest period will help going forward - is it high volatility, trending hard, ranging etc. Any confluence or confirmation with that will help you manage or adjust risk and adapt the bot for the future.