The strategy tester built into MT4 is the best trader’s assistant to check any indicator, tactic and complete trading system. You can start using it right now – such a program is available in any MetaTrader4. There are paid analogs with advanced functionality, but even the simplest free option will be enough to get many benefits from your work. There are at least 8 advantages of testing trading systems in the strategy tester.
8 advantages of testing trading systems in the strategy tester
Advantages of working with a tester
Many people wonder why this program is needed and why it is better than a regular verification on a demo account, because in the end, in most cases, you still have to do a lot of the work manually. The difference is really very big. At this time, you can evaluate the advantages of using the program from a theoretical point of view and then see it in practice.
Ability to track indicator redesign. This cannot be done if you are looking at the old data on a frozen chart; only the final result is displayed. If you don’t know how indicators are redrawn, you can easily redraw them in the tester. Just run it, for example with RSI, at such a speed that it can follow your movements. You will see that more than once after a signal appeared (for example, an exit from an overbought/oversold zone), the line returned. After a couple of periods, there seems to be no signal at all. With the help of the tester, these problems can be seen in real time and conclusions can be drawn about how reliable the indicator is.
Fast checking and less chance of losing signals. When reviewing a demo, it is too slow, moreover, it is impossible to constantly be on the screen and open trades. If you look at the old signals on an out-of-the-box chart, flipping through history, you can also lose a lot of points due to the redesign described above. The execution of the tester is the most accurate and fastest.
Facility to verify automated trading systems. A tester is absolutely essential for all those who dream of finding the perfect advisor. This way you can objectively evaluate your work without missing a single signal. Also, the verification speed is simply unrealistic compared to testing on a demo account.
The ability to view the full history for any year and month. If you scroll through the graphs manually, you will find that the shorter the time period, the shorter the data storage period. For example, you can see them on H1 in a couple of years, and that’s it… If you use the strategy tester, it will show you the data since the date you set. The only limitation is the inability to view charts from the early 90’s and earlier. Simply because they are not in the terminals. But the trader does not need them at all – quotes for the last 20 years are enough to find out the accuracy of the selected forecasts.
Development of “market intuition” . This is the statement of the professionals. It may not be relevant to everyone. Still, it’s definitely worth a try. Learning to “feel the market” is something that is not given to everyone, and if there is a method that has helped many, this is simply great. We need to put it into service. 8 advantages of testing trading systems in strategy tester 2
The ability to check the accuracy of forecasts yourself. It is hard to imagine a more precise and, at the same time, safe version of self-control. If you check your strategy on a real account, you always risk losing money, up to the total depletion of the deposit. Also, you can not constantly monitor the signals – they often appear at a time when you are not at the computer. The same problem persists when verifying a demo account, although you no longer have to risk your finances. As a result, the result is not very accurate, because the offers are opened selectively. The strategy tester allows you to easily and accurately determine the effectiveness of any method, as it can track dozens and hundreds of signals in a row. And very little time will be spent.
Correct vision of the market. You will see the chart as it was at the time the signal appeared. It’s very important. Often, when checking past signal processing on out-of-the-box charts, the trader does not realize that he is already seeing the full picture. At the time of the opening of the deal, he would not have seen it. For example, one of the requirements to enter the market according to the chosen strategy is the presence of a trend. Looking at previous charts, you see a signal emerging at the bottom of a very good trend. And he concludes that the strategy is very good, because it could be elaborated for hundreds of points! But he forgets: at that time there was no such trend yet, respectively, there was a flat. The trade would not have been opened or it would have been considered a major violation. There are many such examples…. The strategy tester teaches the trader to be more careful, to calculate his steps more carefully and to always think ahead. At the same time, he will not have to risk money.
An excellent tool for the formation of pending orders. Few traders place pending orders, especially for levels and trend lines. It is in the fitting room where you have the opportunity to practice well in this regard. Of course, perfecting your skills on a demo account is no worse, but it takes a huge amount of time. In addition, you do not immediately see the results of your actions, and then, when the deal has already been closed in more or less, it is difficult to remember why this or that decision was made. Everything happens very quickly in the fitting room, in a matter of minutes. You can instantly get an answer to the question of whether the analysis was correct.
As you can see, the tester really has many advantages. Even one or two of them is reason enough to use this tool. And even eight is just a wonderful sign of your need.
Of course, each trader will decide for himself whether he needs to use the integrated MT4 program. But the reviews of professionals speak for themselves. Hear from those who have been in business for a long time, have their own websites, advise and train. Almost all of these people used the tester, and many, even with the advent of success, continue to check the reliability of the strategies. So why don’t you put yourself on the same level as them? …
