Page 1 of 2 12 LastLast
Results 1 to 10 of 20
  1. #1
    Active Member

    Angry How do i test stratagies with MT4? (HELP) !!!

    Hi there guys.

    I'm new to this site and forum, and as the title states i need help with backtesting.

    Everytime i go to test a strategy in MT4 all the allotted money i set gets burnt no matter what i change?

    I don't know if i need to change any of the expert options or symbols but i just can't seem to get it to work?

    I've noticed that Bogdan talks about backtesting a lot but i can't even do it to help me out if my life depended on it .

    I've read the article on MT4 from Bogdan, but there was no link to how to back test?

    ANY and ALL help will be greatly appreciated.

    Thank you all in advance to.

    Liam M

  2. #2
    Legendry Member milos's Avatar
    Welcomme Liam to our community.I used RSI and moving average.On MT4 you can follow the movement of prices in the period from 1 minute, 5 minutes, 15 minutes, 30 minutes, etc.
    Relative Strength Index, measures the momentum of price movements. It is also applied on a scale from 0 to 100 Traders basically pay attention to where the RSI is. If you are in the zone above the 70-80 means that the indicator is entered in the saturated zone of the purchase (overbought) and the possible change in the price trends down, or if the indicator is below 30-20 (saturated zones sale - oversold) market is saved go forward. This gives us the regularity assumption that the market can not go in one direction forever and research RSI gives us the opportunity to opt with a certain accuracy where the market will change its direction. But be careful because the RSI can be located in one of the area a long time and that there is no change in price movements. RSI tells us where the market is there to excess, and in any case does not give us accurate price signals turn.
    The moving average or mild moderate, it will slow to react to price movements. What is a moving average grosser, the more quickly respond to price movement. If you need to sketch a simple moving average periods of 5 to 10 minute chart, add up to the closing price for the last 50 minutes, and then divide that number by 5 If you need to sketch a simple moving average for period 5 on the chart for 30 minutes, add up to the closing price for the very last 150 minutes and then divide that number by 5.

  3. #3
    Specialist Member runneroption's Avatar
    Hi, Liam Morrison! Welcome to BOTS!

    You shouldn't put your money on strategies which are not tested back or forward! To start with backtesting firstly you need to check the Metatrader community website and read the detailed explanation there. I could tell you it is not hard at all and with some practice you will master that type of analyzes. I won’t explain you because I am not able to do it in such details as you will find it in the original Metatrader manual, but if you have any questions after that I could help for sure! There are also good visual tutorials on youtube like this one.

  4. #4
    Legendry Member milos's Avatar
    Thanks runeroption for this link.It is excellent.

  5. #5
    Specialist Member RCox's Avatar
    Its an interesting topic. Personally, I only see limited value in backtesting because the only information this will give is about markets that have been seen in the past. I am not suggesting backtesting offers no value at all but as a general rule I am not really interested in how markets reacted yesterday.

  6. #6
    Master Member Bogdan G's Avatar
    Quote Originally Posted by RCox View Post
    Its an interesting topic. Personally, I only see limited value in backtesting because the only information this will give is about markets that have been seen in the past. I am not suggesting backtesting offers no value at all but as a general rule I am not really interested in how markets reacted yesterday.
    True, but you can fine tune an indicator and also see how it behaves in different situations. The rest is accomplished by forward testing. There are limitations though to back testing

  7. #7
    Master Member Bogdan G's Avatar
    Quote Originally Posted by milos View Post
    Thanks runeroption for this link.It is excellent.
    I'm glad you found your answer. Back testing with the use of Expert Advisors is pretty advanced for a newbie (im talking about pausing the candles, speeding them up, re-starting, etc, all using past real market data). I'm not saying you are one, but I couldn't write an article depicting the exact steps because 90% of guys wouldn't understand it and those who would understand it probably already know how to do it. If you dont understand how to do it from the link provided by runeroption but you want to, contact me on skype and I will show you.
    However, if you want to test strategies using simple indicators, scrolling back on a MT4 chart would suffice. Careful about re-painting indicators because u won't be able to back test those. If you want to test the Expert Advisor itself, count me out. I dont go near EAs
    All the best

  8. #8
    Active Member
    Quote Originally Posted by Bogdan G View Post
    If you dont understand how to do it from the link provided by runeroption but you want to, contact me on skype and I will show you.
    However, if you want to test strategies using simple indicators, scrolling back on a MT4 chart would suffice. Careful about re-painting indicators because u won't be able to back test those. If you want to test the Expert Advisor itself, count me out. I dont go near EAs
    All the best
    Hi everyone, thanks for the answers and thank you runeroption for the links.

    Haven't gotten round to the links yet as I had work today, like most of us. Which is why the late reply.
    Also Bogdan you have helped yet confused me lol. When you say test with the EA's do you mean going into metatrader and selecting the test strategies?

    Because that is what I thought was back testing. Lol.
    But now it makes sense with the whole use the charts and look back to see how it has preformed. "with EMA'S and MACD and RSI"
    So essentially is that what back testing is? Looking back on the charts to see how these strategies have preformed before, and selecting the test strategies in metatrader is to do with EA's?

    Correct me if i'm wrong, and if I haven't explained this properly let me know i'll retype it.

    All the best Liam Morrison

  9. #9
    Master Member Bogdan G's Avatar
    I'll try to explain better:

    Situation 1: You want to test the Expert Advisor (EA) itself
    Load it on your charts, press F6, select the period you want it tested, time frame, etc. Leave "Visual mode" un-ticked (lower left corner). Wait for the test to finish. You will get a detailed report of that specific EA's performance within the parameters you just set. I never did this and never will

    Situation 2: You want to test a specific strategy with the help of any EA. Here the EA itself is not important because you just use it to "trick" your MT4
    Load any EA you have, even the default one called MACD Sample or similar, press F6 (the Strategy tester will pop up), select the time frame, period, etc. Tick "Visual Mode", press Start.
    Now notice that near the "Visual mode" option you have a slider. That speeds up your chart or slows it down. Near that you also have a Pause/Play button. That pauses and re-starts your chart.
    Now pause the chart and attach the indicators required by the strategy you want to test and press Play. The candles will unfold in front of you as if you were watching them in real time (the data is teh real one - historical) but you can control their speed or even pause them. Get your paper and pen out and write down how many trades were successful.

    Situation 3: Easy/simple back testing
    Load the indicators required by your strategy and scroll back the chart to the date you want to begin your test.
    Slowly scroll forward (or press F12) and look for signals according to your strategy. Keep in mind that this way of testing is inferior to the "Situation 2" way because you are able to see the candles to teh right and no matter how much you try not to, you will be influenced by this in your decision.
    Hope I helped
    All the best

  10. #10
    Active Member
    Quote Originally Posted by Bogdan G View Post
    I'll try to explain better:

    Situation 1: You want to test the Expert Advisor (EA) itself
    Load it on your charts, press F6, select the period you want it tested, time frame, etc. Leave "Visual mode" un-ticked (lower left corner). Wait for the test to finish. You will get a detailed report of that specific EA's performance within the parameters you just set. I never did this and never will

    Situation 2: You want to test a specific strategy with the help of any EA. Here the EA itself is not important because you just use it to "trick" your MT4
    Load any EA you have, even the default one called MACD Sample or similar, press F6 (the Strategy tester will pop up), select the time frame, period, etc. Tick "Visual Mode", press Start.
    Now notice that near the "Visual mode" option you have a slider. That speeds up your chart or slows it down. Near that you also have a Pause/Play button. That pauses and re-starts your chart.
    Now pause the chart and attach the indicators required by the strategy you want to test and press Play. The candles will unfold in front of you as if you were watching them in real time (the data is teh real one - historical) but you can control their speed or even pause them. Get your paper and pen out and write down how many trades were successful.

    Situation 3: Easy/simple back testing
    Load the indicators required by your strategy and scroll back the chart to the date you want to begin your test.
    Slowly scroll forward (or press F12) and look for signals according to your strategy. Keep in mind that this way of testing is inferior to the "Situation 2" way because you are able to see the candles to teh right and no matter how much you try not to, you will be influenced by this in your decision.
    Hope I helped
    All the best

    Thank You Bogdan.
    You've helped a lot. I'm going to try this out for every strategy i use now.
    Hope that if anyone esle has the same problem i've helped them by asking this question.
    Thaknyou everyone for all the help and support. If i need more guidance ill be back but probably in other posts. =)

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3