After the test is over, the Tester reports its results. As every one notices, there is a mysterious number named Modelling Quality. Sounds very promising, doesn’t it? Anyway, not many traders know, what the number actually represents, but many consider it as a key number for confirmation of their testing result.
Modelling Quality Formula
ModellingQuality = ((0.25*(StartGen-StartBar) +
I do not want to dig deep into the formula used by Metaquotes, but the interesting knowledge is the results cannot reach values outside a range from 25% to 90%. So, where do the 99% or 99.9% come from?
Now, I can tell you the truth: the number represents nothing. The number in the report is just a number someone (or something) wrote into the FXT file. Though the tester uses the above (weird) formula, you could replace it by any number, including 99,99% or 0.00%. The strategy tester then may display this number in the result report.
Be smart and avoid using this number as an argument for your performance results, as this number has actually very problematic relation to the model performance. Every time you should judge yourself, how precise your historical data is, and how far your EA is resistant to the degree of intra-candle model quality.
These values are treated in a similar way to the spread. Though the FXT file contains those values, they are constants over the entire testing period and they are actually the most recent values, rather than the average.
Those parameters are completely neglected in the tester, but everyone knows they may have huge impact on some strategies. The only way you may somehow include their impact into calculations is slightly increasing your static spread.