Backtesting and margin level %

[Henry Lodewicus Combrinck]

Greetings,

When performing backtesting mt5, in the results tab you are given the lowest margin level % it reaches.

My broker does a margin call at 50%, so I’m trying to get clarity: given a leverage of 1:100 or 1:500 or whatever, is that margin level % in the backtest results a good guide wrt the lowest/worst the margin level % reached?

So if in the results of a backtest the margin level % only ever reached say 800%, can I assume (all things being equal of course on any given day) that it is far from the 50% margin call level?

Sorry if this is a silly question, just trying to understand this component.

[Fernando Carreiro]

Your topic has been moved to the section: Expert Advisors and Automated Trading
Please consider which section is most appropriate — https://www.mql5.com/en/forum/172166/page6#comment_49114893

⚠️ You have been advised about this many times. Please pay attention next time.

https://www.mql5.com/en/forum/172166/page6#comment_49114893

[Fernando Carreiro]

You previously asked something similar. Did you do some research on it?

Forum on trading, automated trading systems and testing trading strategies

Margin level % in MT5 backtest results - what would constitute a margin call?

Fernando Carreiro, 2023.12.30 14:50

Please do some research on how leverage works and how the margin requirements are calculated and applied.

Also learn about free margin, deposit load, margin call-out and margin stop-out.

These concepts are part of the trading basics that all traders should know and learn about.

Search the web as there are many websites that offer free lessons on these trading basics.

On the website BabyPips there are several sections describing Margin Call and Margin Stop-out with titles such as:

• What is Margin Level?
• What is a Margin Call?
  
• What is a Stop Out Level?
  
• Margin Call Explained
  
• How to Avoid a Margin Call
• Trading Scenario: Margin Call Level at 100% and Stop Out Level at 50%
• Trading Scenario: What Happens If You Trade With Just $100?
• etc.