Lab Notes

Trading PhilosophyWhy Most Traders Stay StuckIs Trading Investing Or Gambling?Why I Share EAs For FreeCan Trading Be Part Of A Normal Life?
EA & SystemsWhat Is An EA Ecosystem?Why One EA Is Not A Business?Why I Stopped Looking For The Perfect EA
Experience & LessonsWhat I Learned From Thousands Of Backtests
Backtest & ValidationAre We Using Backtests Incorrectly?If Backtests Cannot Predict The Future, Why Do We Use Them?What Is A Good EA?Can A Backtest Prove Future Profit?Why Do Backtest Results Change?Does A High Win Rate Mean A Better EA?Who Decides The Outcome?What Question Should We Ask A Backtest?Why Beautiful Backtests Can Be DangerousBacktest As A System Understanding Tool
Risk ManagementWhy Survival Matters More Than Profit?Why I No Longer Chase High Returns
Home / Lab Notes / Who Decides The Outcome?
Backtest & Validation

Who Decides The Outcome?

Short readBacktest & Validation

Question

Who decides the outcome, the EA or the market?

Answer

The EA decides when to enter and exit. The market decides whether that trade becomes a winner or a loser.

Key Takeaway

The EA executes. The market decides.

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Are We Using Backtests Incorrectly?If Backtests Cannot Predict The Future, Why Do We Use Them?What Is A Good EA?

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