Don't Fall for "+5,000%" Backtests — Compounding Illusion and Real Metrics

"Up +6,408% in 10 years" — "100x returns" — you've likely seen eye-watering numbers on EA sales pages. At first glance, it's tempting: "Wow, if an EA can deliver that, it must be incredible." But here's the catch: those massive profit percentages are almost never the result of the EA's actual performance, but rather the multiplication effect of compound returns.


This is a companion discussion topic for the original entry at https://fxea365.com/blog/compounding-illusion-backtest