# Thread: EA Backtest Q&A

1. ## EA Backtest Q&A

I just started to learn backtesting and optimization on EA..I would like to ask some questions..

After I run an optimization on EA, I not sure how to read the result...

As attached image below, what is the RED circled items mean?
* I use \$1000 as deposit for testing with 3 months data

1. The "Profit" means profit OR balance?
Example, the 1st Pass's Profit indicates 393.50,means?

Option A: profit 393.50 (balance increase to 1393.50 after 3 months)

OR

Option B: balance remains 393.50, I have lost 606.50

2. Profit factor?

3. Expected Payoff?

4. Drawdown\$ = \$457.10 means?

5. Drawdown % = 38.37% how this % calculated?

For drawdown% i remember Sir Funyoo did mention that less than 30% is desired..The lesser the drawdown% the better.

thanks to anyone...

#### Tags for this Thread

100, backtest, backtesting, deposit, funyoo, how to, learn, profit, profit factor

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