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Chapter 4
- "Back Testing / Expert Advisor" -
In this module
you will learn how to check the expert advisors
performance
based on historical data
In other words, you can test how your expert advisor
would have performed
if you had a attached them
at a particular time in the past
In our example
we will do the back-testing
for the previous day
There are two ways to get to the
"Strategy Tester Module"
Either by pressing
"Control plus R" (Ctrl+R)
or by clicking the "Magnifier" button
at the top-side of the toolbar
Once clicked
a new window will appear at the bottom of MT4
First, you need to decide which expert advisor
you would like to test
After this, you will need to select the financial instrument
on which you want to test, your expert advisor
The instrument
can be selected in the "Symbols" tab
Let's select the
"Euro / USD"
In the "Model" tab
you can decide how precise the test should be
in our example we choose the
"Every Tick" option
which is the most precise
Next, you need to decide on the time-frame
for which you want to perform the back-testing
In our example
this willl include two days
from the 25th, to the 27th of March
You can also have the "Visual Mode" enabled
this means that MT4
will generate the chart
with the simulated trades displayed
and the speed of the visual mode
can be adjusted with the slider
In the "Period" box
you can adjust the time-frame of the chart
for example
15 minutes (M15)
On the right hand side
you can change or modify the expert symbols
and chart properties
according to your preference
Once everything is set
hit the "Start" button
to begin the back-testing simulation
If you select the option
"Visual Mode"
you can see the visual representation of your
trades on a chart
In the "Results" tab
you can view the trades
that would have been opened
by the expert advisor
during a specific time period
The "Graph" tab
shows you, graphical representation
of your accounts balance progress
Next, you have the "Reports" tab
which shows detailed information and statistics
of the performance of your expert advisor
And finally, you can use the "Journal" tab
to see all the operations and activities
which MT4
would have kept a record of
Thank you for watching