Discussion of article "How to Test a Program Before Buying it from MQL5 Market" - page 4
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I believe that this article can be improved with the following points to minimize curve fitting and to reject poor EAs.
1) It is important to back test a system over 10 years with at least 1,000 trades. Why? Two to three years trading results are prone to curve fitting. Less than 1,000 trades do not provide a large enough statistical sample.
2) It is important to used fix 0.1 lot for testing over the entire period. This will unmask any manipulation of money management to hide poor drawdown. Fixed 0.1 lot testing will show the true reward and risk of a trading system.
3) For MT5 EAs checking, it is important to utilize MT5's MOST ADVANCE and HIGHLY ACCURATE "Every Tick" setting. If an EA can generate a positive result with "Every Tick" setting, then it will have a good chance to survive in the real market.
- Time length of backtest is not too important. It is more important to test different market conditions and see how your EA performs. It is possible to do this in 2-5 years....maybe less. But if you do try to tick data backtest 10 years, you have to keep in mind that spreads, liquidity, and other trading conditions could have been different 5-10 years ago from what they are now. You must take that into account and also consider that it can change in the future as well.
- Why would someone need to use fixed lots? Not everyone uses a fixed lot strategy.
- Mt5 does not allow for importing of 3rd party data. mt4 can still create FXT files using Birts csv2fxt script. you can also use Birts TDS to enable real variable spreads for backtesting with tick data precision. So with mt5 backtest, your 'Every Tick' setting will not be precise to know exactly what occurred in the market. It is ok to test a function is programmed correctly in most cases......but to fully test, especially to fully simulate live trading condition, you need to import your own tick data.
Good morning ...... I have noticed these problems.
1) Typing error that does not allow me to learn, it is in "BACKTESTING ON BAD DATA FROM HISTORY: simulation selected from 01/01/2012 to 28/09/2012, which by chance happens to be favourable? To answer this question, we will simulate the Expert Advisor with the same parameters in 2011, taking as interval 01/01/2912-31/12/2011. Let's run the simulation and observe the results".
2) In the RUN field of the Strategy Tester of the current MT5 (build 1502) it seems to me that the "normal" option was changed to "no delay".
I need the one for MT4 ???
Very useful for somebody who'd buy a robot and who does not know which one to choose !
Hi...may i know how can i use my own strategy to test?
Because all of those is MACD, MA has been setting by MT5...
How to create my own strategy and applied into the Strategy tester? Pls teach me or send me the links...
i will appreciate it...
2018.08.20 14:43:40.844 MQL5 Market failed download product 'True Scalper EA MT5'(www.mql5.com:443 send failed [403: Forbidden])
These are the errors that pop up in both MT4 and MT5 when clicking on the "Download Demo" button. Buying and renting do not work either. I tried several robots in the market, all of them are like this. I downloaded MT5 from you, MT4 from forexclub.
What to do? How to test robots?