Validate first
If the EA backtest looks great, why can live trading differ?
A backtest replays history under assumptions. Live trading adds costs, latency, liquidity and human behaviour.
Common gaps
- Backtests often assume ideal fills; live trades pay spread and slippage
- Historical data quality changes results
- Parameters fitted too closely to the past can fail later
- News, liquidity and platform rules change execution
- Live trading includes disconnects, delays and forced liquidation
Basic validation flow
- 1
Write the strategy rules and assumptions first
- 2
Check different periods and market regimes separately
- 3
Include spread, commission, slippage and swap
- 4
Review max drawdown, losing streaks and position concentration
- 5
Use demo or small size first; never treat results as guaranteed
What to check in MT4 / MT5
Modelling qualityLow quality makes the equity curve less useful.
Fill assumptionsFill price, latency and lot limits must be realistic.
Report detailsLook beyond net profit: drawdown, win-rate structure and holding time.
Failure conditionsDefine when you stop using the strategy.
Educational only. Validation does not remove risk or guarantee future results.
Next step
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