Comments for https://ctrader.com/products/1056

This is a technical question, and the answer is divided into two parts.

1. Sample Backtest Period
   We do not share a single "standard backtest period" for a very simple reason: backtest results depend entirely on the settings (timeframe, EMA pairs) and the historical period you choose.

A positive backtest on EURUSD for the last 6 months might not be valid for the previous year or for a different asset. We encourage our users to test the bot on their preferred market conditions.

However, we will be publishing several examples and optimized "setfiles" on our Discord channel.

1. Modeling Assumptions
   This is the most important part. The EMA Up&Down is a classic trend-following system. Its fundamental assumptions are:

Markets Move in Trends: The basic assumption is that prices do not move randomly but tend to follow a direction for a certain period.

EMAs Identify the Trend: The model assumes that a crossover of Exponential Moving Averages (e.g., a fast EMA crossing above a slow EMA) is a valid signal that a new trend (or the continuation of an existing one) is underway.

Momentum Persists: The hypothesis is that, after a valid crossover signal, the price will continue to move in that direction long enough to generate a profit (before the opposite crossover occurs).

Consequently, the model assumes it will perform poorly in sideways (ranging) markets, where the EMAs will cross frequently ("whipsaw"), generating many small, false signals. For this reason, the bot often includes filters (like ADX or RSI) to try and "skip" these sideways phases.

To discuss the best settings and filters for optimizing these assumptions, we'll see you on our Discord channel: https://discord.gg/VcsszWc6z7

Can you share a sample backtest period and the modeling assumptions you used?