5. Back testing with Meta Trader 4 (3)

Bookmark and Share

1. Meta Trader Strategy Tester

When you back test with Meta Trader Strategy Tester, you will need to use a function called “Meta Trader Strategy Tester”. 

To start-up Meta Trader, select "View > Strategy Tester" (Ctrl+R).

MetaTrader Strategy Tester

A screen like this will be displayed.

  1. Click Strategy Tester so that the lower part will be displayed. 
  2. Then, select the strategy you want to test (Expert Advisor). We will use the accessory “MACD Sample”.
  3. Now, we have to determine the Symbol (currency pair). Normally, an active chart currency pair will be displayed.
  4. Model: Every tick will achieve a more accurate simulation result.
  5. From, To: Select the term to test the strategy.
  6. Period: Select the period. Normally, the period of an active chart will be displayed.
  7. Expert properties: You can change the parameter of each strategy by clicking the button.
    At this moment, we will operate it by the default setting so there’s no need of changes to be made.
  8. Finally, click the start button and perform the test. Sometimes it takes a while to perform.

2. Checking the test results

This graph shows the tracks made by dealing $1,000 with MACD Sample.

MACD Sample Report

Well, there still seems to be quite a bit of improvements that can be made on this program. After trading about 180 times, the initial deposit has decreased to as low as $100. As the example here shows, graphs are one of the best materials to intuitively judge the test results by.

Now, let’s open the Report tab.

MACD Sample Report

It is a little hard to see in the upper image, but the figure “-903.31” is displayed in the Total net profit column. This means that if this strategy is used in the same term, a deficit of $903.31 would be incurred. There are other important indicators such as drawdown in this screen, but we shall cover those components later.

For your information, each trade will be displayed on the Result tab. In the Journal tab the remarks for each trade are displayed.

3. Expert Properties and Initial Deposit

In part2, I showed an example of moving and investing $1,000 in MACD Sample. To determine the amount of the initial deposit, you need to fix the value of Expert Properties (see section 1-7).

Open the “Testing tab” on “Expert Properties” window and fill in the amount of deposit in the “Initial Deposit” column.

up