Before starting using any expert advisor in the forex market it is very important to do backtests in order to find out if the forex robot will show stable performance. Today, I want to show to how to do backtest using Forex Trend Detector
Forex Trend Detector Backtest
I want to show you step by step on video how to do backtest using Forex Trend Detector(forex robot). This whole process is easy and simple.
Firstly, you have to go to the top menu and choose "Tools -> History Center". Then window will pop-up.
On this window, you have to download the latest tick data as you click on for ex. EURUSD and then click "Download" button. Metatrader 4 will ask you if you want to continue and give you details about it. Just click "Yes" to download. If you have already the latest tick data the mt4 terminal will inform you about it and you may skip downloading at this time.
After downloading the tick data, you have to double click on every timeframes in order to activate the tick data. Then just close the window.
The next step is to open strategy tester. You can find it on the top menu choose "View -> Strategy Tester". There you have to choose:
Expert advisor in the dropdown menu
Model: every tick or open price only(this option is faster method)
Use data: you can set date if you want to make backtest for specific time
Visual mode: you can check it if you want to watch on chart while the backtest is going on(open/close trades; price movements, so on)
The next step is to choose Period and Spread.
"Expert Properties" button: used to set desired settings for the expert advisor that you want to backtest. There you can also set initial deposit in "Testing" tab.
"Symbol Properties" gives you details about the symbol you will backtest
"Open chart" button can be used to open the chart after backtest is finished and observe how and where the positions were opened(visually).
"Modify Expert" is for developer only
Then you have to click "Start" and the backtest will start
Now, I want to mark some important points while doing backtest with Forex Trend Detector on EURUSD curreny pair.
Important: Backtest_GMT_Offset - this parameter is very important for back-tests. If you do not enter the correct GMT Offset for the back-test history data loaded in your MT4 terminal, your back-tests will be incorrect.
While doing backtest it is good practice to try different risk in order to find out how much is the EA's risk, what capital you need and settings.
NEW: Use_EURUSD_HF_Settings (true/false) – this parameter will activate the high trading activity mode for EURUSD. The EA will trade more often and the potential profit is expected to be about 30-50% higher than the standard mode. However, we recommend the standard mode, because it is expected to provide more stable and higher profit factor trading.
I plan to post separate post about this settings soon.