In the back test, you can see how the EA you want to use will score on the chart. Actually using past charts to run EA, you will be able to know what the trade result will be, you can tell whether that EA is excellent. If you have an EA you want to use, if you are concerned about using real accounts immediately, there is a way to check the performance in a back test.
First of all, we need some preparations to back test. Of course it is necessary to install MT4 and EA.
The back test itself can be done with tools such as Hyper Speed Next and ForexTester, but it is also possible to do it on MT4. After activating MT4, select Display → Strategy Tester from the menu item. When you overuse the strategy tester you can extract back the data of the past charts and perform a back test.
The setting screen will be displayed, so let's set the following items.
· Expert advisor: Select EA to use
· Currency pair: Select the currency pair to be used for the back test
· Model: Select the chart data to use
· Use date and time: Select the period for starting and ending the back test
· Duration: Select time axis such as 1 minute or 1 hour stick
· Expert setting: Enter EA parameters
· Open chart: Confirms trading point etc.
As for the model item, if it is full tick, it takes time to verify, if it is a control point it will be a simple test and the opening price will be tested using the opening price. Basically, it is done with all ticks. If the period of the chart is short, download the historical data of the past charts.
When you finish setting, click the start button, the back test will start. It takes time depending on circumstances, wait until it is over
Download of historical data
To download historical data, select Tools - Options - Chart. Since there is an item called the maximum bar of the chart, save it to 9999999999999999999. The maximum number is automatically adjusted when saving.
Then choose Tools → History Center and select the currency pair for which you want to retrieve data. Click on the download and a dialog will appear. Click OK to start downloading, since the data is big, it will take some time and the download will complete. This completes the download.
However, when downloading from MT 4, since data is not accurate, some people use other provided data such as of FXDD. The following is the chart data download page of FXDD.
When past chart data is downloaded, import it in Tools → History Center. After importing, restart MT4. Basically, the chart data provided by each company is for 1 minute. If you use it for 5 minutes, convert using such as period_converter_ALL.mq4.
Good back test results do not necessarily mean it will make profit
Even if you perform a back test and EA shows outstanding results, actually using to real accounts does not always give you similar results. The market is always changing, and it is not unusual for the market to crash, sometimes due to the deterioration of the world economy and employment statistics. Sometimes it moves more than 1,000 pips a day so many EAs cannot be dealt with in such a market, sometimes loss expands.
Whatever EA it is, you should see the back test as a reference level, and if you overestimated your back test, you may end up losing money. The same with the published back test results EA being sold.