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July 8, 2021

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What is a Strategy Tester and How To Use It On MetaTrader 5

Strategy Testers are very important so users can evaluate if the trading robot is efficient to be used in the real trading account. It is also available on your favorite trading platform, the MetaTrader 5 (MT5). As for the testing operation, it is based on the financial instrument’s history, this robot helps analyze the historical data on a particular period of time. It also makes virtual operations based on the algorithm. Moreover, testing results evaluate the strategy used and the possible behavior of the trade. Among the things that the Strategy tester can do, its main advantage is to evaluate the trading robot for its performance before you use it in your live account.

Uses of Strategy Tester

Testing programs and other applications are possible in Strategy Tester. It is important to test the trading robot before getting it into the financial market. There is also a free demo account that you can download so you can check its behavior when it comes to checking the historical data. Furthermore, the MT5 Strategy Tester has a couple of testing modes to better achieve optimal trading quality ratio and speed ratio. There is also a mode called ‘Every tick based on real ticks’ mode which provides the most accurate testing results to ever get obtained in the trading platform. During this mode, the trading robot will get tested using real ticks coming from liquidity and exchange providers.

Other than that, there is also an “Open prices only” mode that lets you have a very fast estimation. This strategy tester tests multi-currency trading robots that are used to analyze different currencies and identify their correlation with each other. For its testing process, you can have it in real-time. The trades which are made by the Expert Advisor are generally displayed on the chart. After the test, it will provide a comprehensive testing report detecting the weak points of the Expert Advisor so you can make appropriate changes.

Optimization

Another very useful characteristic of this Strategy Tester is its optimization feature. It allows the testing of trading robots against different parameters as well as choosing the optimal value. Complex robots are optimized in a very extensive process. However, it can also be shortened using genetic algorithms. The results of optimization can be shown in 3D mode or 2D mode.

What makes MT5 quite extraordinary compared to other trading platforms is its tools and features which are carefully made by exceptional creators of trading robots. You can also use this Strategy Tester in creating effective and innovative MQL5 applications.

MetaTrader doesn’t just benefit traders but brokerage firms as well. It is a multi-asset platform that works perfectly if you are still starting a brokerage business or planning to expand its operations. Through the use of the MT5, you can establish exceptional brokerage services available for different markets such as Futures, stocks, and the Forex market. If you are planning to expand your trading and venture into other markets, you should consider using MetaTrader 5 since the previous trading platform, the MetaTrader 4 was developed to particularly support Forex traders.