Whileforward testing on a demo account is essential, backtesting allows youto simulate trading over a long period of time in just minutes. At best, backtesting offers only a closeapproximation of how trades would be executed in real-time. IntroductionThe article provides a detailed description of the process of testing and optimizing Expert Advisors in the MetaTrader 4 Strategy Tester.
The importance of such information and the need for this publication cannot be underestimated. MT4 enables traders to test Expert Advisors prior to using them in a live market. It is based on historical quote data. During the test, a trading robot analyzes available quotes performing virtual transactions in accordance with its algorithm.
This allows you to evaluate how the Expert Advisor would have traded in the past and simulate its behavior in real trading.The built-in Optimization function allows you to select the most efficient parameters for obtaining the best trading results. For example, you can set the trading robot parameters so as to achieve maximum profit, to minimize risk and so on.Visual testing in the real-time mode uses the chart window to using metatrader strategy tester mq4 how an Expert Advisor performs trading on historical data.
Upon completion, the tester provides you with a full report containing both graphical and quantitative results. The built-in MetaTrader 5 Strategy Tester facilitates the testing of automated robot performance in trading. This powerful tool not only allows testing the efficiency of an Expert Advisor, but also allows detecting the best input parameters before you run the EA on your real account.The entire operation of the Strategy Tester is based on historical quotes of currencies, stocks and other assets.
During testing, the Expert Advisor goes through the accumulated quotes and performs virtual transactions according to its algorithm. This procedure allows an evaluation using metatrader strategy tester mq4 how the EA would have traded in the past.The MetaTrader 5 Strategy Tester allows testing Expert Advisors on multiple currencies. Trading robots have access to all the financial instruments in the tester and can perform trading transactions with any of them. Testing and optimization philosophyWhen using the strategy tester to find likely settings to use for a particular EA one should not lose sight of the fact that we are using historic data and performance as a guide to plan future trading approaches.
There is therefore no guarantee or likelihood that history will repeat itself and the same results can be achieved. The process starts with an inherent flaw.But, in the absence on anything better we are like horse race punters who are using the history and information of th.