How to backtest a robot in MetaTrader 4 (Strategy Tester)

Before using a robot with real money it is wise to test it on historical data. MetaTrader 4 includes a tool called the Strategy Tester that simulates how your robot would have traded in the past. Here we explain how to use it.

Steps to run the backtest

• Open the Strategy Tester from the View menu or by pressing Control plus R.
• Select your Expert Advisor from the drop down list.
• Choose the currency pair, the timeframe and the date range you want to test.
• Adjust the robot parameters in the Expert properties button.
• Press Start and wait for the simulation to finish.

How to interpret the results

Look at the net profit, the maximum drawdown and the profit factor. A robot with good profit but a huge drawdown is dangerous. Also check the modeling quality: the higher it is, the more reliable the test.

Final tip: a good backtest does not guarantee future results. Avoid overfitting and always confirm the results afterwards on a DEMO account before trading live.