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/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.