Read an EA report without being misled by one metric

Begin with provenance

Identify whether a report is a historical simulation, a demo forward test, or a live account record. Record the software version, inputs, period, broker, and costs. A screenshot without those details offers little basis for a reproducible comparison.

Read balance alongside equity

A balance curve includes closed results; equity includes open profit and loss. A widening gap can indicate unresolved losses. Drawdown should state the underlying series, peak-to-trough method, and whether it is absolute or relative.

Profit factor and win rate

Profit factor compares gross profit with the magnitude of gross loss. Win rate describes the share of winning trades under the report’s definition. Neither reveals the full distribution: frequent small gains can coexist with rare, much larger losses.

A small number of trades can produce unstable metrics. Positions opened together may also be highly correlated. Look at the trade count, duration, exposure, and range of market conditions rather than treating every fill as an independent trial.

Check the period and selection process

Ask whether the settings were selected using the displayed period. Out-of-sample results are more informative when the observations were untouched during selection. Record any later adjustments; repeated tuning against a test period weakens its independence.

Inspect the end of the report for open positions, deposits, and withdrawals. Compare losses during difficult subperiods, not only the final total. No single metric can establish future profitability or suitability.

Common questions