Testing & evaluation
Backtest withdrawals: separate trading profit from account cash flow
A test that simulates withdrawing money follows a different capital path from one that reinvests everything. Comparing only the final balances can therefore hide both the withdrawn amount and the effect of smaller later positions.
Know what is simulated
TesterWithdrawal emulates a withdrawal during a test and returns whether it succeeded. It does not transfer real money. The withdrawal amount is specified in the deposit currency, so its meaning belongs to the test account configuration.
Reconcile a simple example
Suppose a hypothetical test starts at 1000, makes 400 in net trading profit and withdraws 200. With no other cash flows, ending balance is 1200. Ending balance plus withdrawals minus starting capital equals 400; the withdrawal itself is not another trading gain.
Compare the sizing path
An equity- or balance-based EA may reduce future lots after money is withdrawn. Freeze the withdrawal schedule and automatic-sizing rule when comparing runs. A reinvestment test and a withdrawal test are not identical except for their report formatting.
Present the result clearly
Show starting capital, net trading result, deposits, withdrawals and ending balance as separate fields. Ask AI to verify the reconciliation rather than simply calculate a percentage from final balance. Label any withdrawal policy as a simulated scenario, not an available account-service feature.
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