The traditional tickdata test has always been useful in setting the correct risk and gain expectancy of the strategy. Version 4.0 provides consistent gains across various price action with little or no dependence on price range. The strategy now has a max historical drawdown of just -836 pips. The EA makes 25% less trades, but gains more than any of the previous versions. The average gains are about 110 pips and average loss is about 66 pips with a success rate very close to 50%.
Simulated price action models enables us to test the efficacy of the EA on previously unseen market conditions and will help us understand the EA's performance potential in future live trading. Phibase has developed dozens of price action models for GBPUSD based on various economic and fundamental analysis made by major banks and trading houses. The price action models enables us to provide realistic forward tests on various models of future price action.
CabEX V2.0/v3.7 had very similar trading style. While V4.0 retains all the strengths of the original version, the EA is now strengthened by its ability to understand market conditions better due to the much longer look back period. The strategy is capable of identifying various flag, wedge and triangle patterns, apart from butterfly and bat patterns. This information helps the EA in making better trade entries as well as avoiding trades in uncertain conditions.