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Contents

How to test Expert Advisors – a comprehensive MetaTrader 4 manual

Written and compiled scripts, so-called Expert Advisors, can be run on any MetaTrader 4 terminal. This factor has created a whole market of user programs, distributed both free of charge and on various terms of a one-time payment or subscription. Today, you can find more than one hundred thousand such programs on the Internet.

In theory, Expert Advisors should contain an open and repeatedly tested on demonstration trades and in real conditions strategy, and test results are usually attached to the program. It turns out that traders acquire fully automatic, already tested algorithms.

In practice, this is not always the case, and since robots get access to a real deposit, it is very important to make a rapid assessment of the advisor purchased at the first stage of the choice, regardless of the delivered and advertised results.

There are only two ways to check the program for compliance with the trading strategy, for code errors and for real profitability. Any MetaTrader user can check the effectiveness of the program via the strategy tester or run the program on a demo account.

Let’s consider both ways of testing in detail.

Preparing the MetaTrader 4 terminal for Expert Advisor testing

A custom script with a coded strategy for MetaTrader 4 is a mql4 or ex4 file. The trader should ensure the correct path when installing an Expert Advisor, so that it can be found and run on the MetaTrader 4 platform without problems.

The installation looks like an ordinary file copying, but there is one important feature — the folder for placing the Expert Advisor files is opened via the running trading terminal.

The first step of the trader is to make sure that the EA files are in fact intended for MetaTrader 4 by checking the extension (it should be mql4 or ex4). For the sake of providing an example, we will install VR Smart Grid robot, which consists of a single file.

The second step is the MetaTrader 4 launch

The third step is to open the Expert Advisor installation folder via the “File” -> “Open Data Folder”.

After this operation, the folder window will open as usual.

Indicators, Expert Advisors, auxiliary libraries, presets, templates and other files related to the custom configuration of the platform are located in the MQL4 folder. It is enough to open it to immediately find where to copy the Expert Advisor files due to corresponding folder names.

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Step four – distribute the Expert Advisor files to the appropriate folders, following the recommendations attached to it or relying on extensions:

  • mql4 and ex4 — to the Experts directory
  • dll libraries — to the Libraries folder
  • presets files — to the Presets folder

In the example, we will copy the VR Smart Grid file to the Experts folder.

If the Expert Advisor is installed correctly, its name will appear in the Navigator, after MetaTrader 4 restart.

The final stage before testing, is ticks history downloading. Define the instruments you want to work with and press F2.

Select the desired currency pair or CFD contract in the Quotation archive window, and then click the Download button. The tick history will be downloaded, the progress will be marked by the green bar at the bottom of the Quotation Archive window.

If the history is already loaded into the Metatrader 4 terminal and the broker’s servers do not contain new data, a message will appear with a suggestion to recalculate timeframes. Just in case it is better to make the suggested update of tick data.

The downloaded archive of quotations will provide the strategy tester with database for modeling (restoring) candles when recreating the trading history.

Using the Strategy Tester

The first way to test Expert Advisors – using the Strategy Tester – is faster, but it does not provide accurate results. This is a great option for pre-testing the script.

Preparation of Metatrader 4 Strategy tester for running Expert Advisors

The strategy tester opens as the bottom window of the Metatrader 4 workspace, allowing the trader to test and optimize trading systems and to keep track of current positions at the same time.

The trader can launch the service at any time through the “View” menu or via combination of shortcuts specified in the “Strategy Tester” option.

The developers tried to make this application intuitive, so a user, even barely familiar with the Metatrader 4 platform, has almost no questions, but some features are quite specific.

Setting up Advisors properties of the Metatrader 4 Strategy Tester

The EA properties are located in the right corner of the strategy tester field and control the direct setting of test modes divided into three tabs:

Never optimize the initial run of the Expert Advisor! Performance test of any trading system should not be started with an attempt to “adjust” the parameters of the indicators and conditions included in it.

The optimization system uses a “genetic algorithm” that can effectively improve the performance on the test. The side result of his work is parameters tailoring for a specific historical period and instrument loaded into the tester. In real trades, when faced with another form of fluctuations (volatility, laps, etc.), the robot will make a lot of losses.

  • The “Deposit” defines the currency, the starting size of the deposit, the direction of trade (in both directions or trades of only one type) and the type of optimization that will be disabled
  • The “Input parameters” are the settings of the Expert Advisor, the tab is completely identical to the one that appears when the robot is added to the chart.

As already mentioned above, for Expert Advisor’s correct operation, you should follow the settings recommended or set by default by the developer of the trading system.

In some cases, changes are possible within “presets”, special files attached to the robot. If the Expert Advisor is popular, the settings files can be found independently on the Internet.

The VR Smart Grid robot, considered for example, has similar files of custom settings, which after downloading should be placed in the Presets folder. To do this, you need to open the MQL folder in the terminal via the Data Catalog, so that you can place the file with the extension “set” in the Presets directory.

Then, in the strategy tester, you will only have to click the “Upload” option and select desired file in the window that pops up. Often, the Tester folder is opened by default when you select a download, so use Windows navigation to find the Presets folder yourself:

Metatrader 4 tester fields description

When you open the test service, the default option “Expert Advisor” is set to the left. It automatically displays the entire list of robots in the Experts folder and the Navigator window.

If you select the second option – the indicator, a list of files in the Indicators folder will be displayed.

To run the Expert Advisor test, double-click on its name in the drop-down list. Next, the instrument, according to the quotes of which the effectiveness of the trading system will be checked, is selected in the same way – one click is enough to display it in the settings window.

The “Model” function determines the accuracy and duration of testing, the “every tick” method restores historical quotes using all data of the archive, so it is the longest, the other two types do not provide an accurate estimate and are used by developers at the stage of testing “trading hypotheses” to save time while searching for ideas.

In some cases, when the logic of the robot is “tied” to a long-term strategy, where trades are opened at the price of opening a candle (bar) at the beginning of the day, you can resort to a model with the appropriate name — will allow the trader to “rush” the Expert Advisor through the maximum time period.

The duration and accuracy of the test is affected by the date or length of the historical segment. Some traders believe that the bigger it is the better, but empirical experience proves that:

It is much more important to choose a section with the most symmetrical (even) distribution of upward trend, flat and various volatility levels

A segment from 2000 to 10,000 candles or bars of the timeframe — the interval selected in the “Period” menu — is enough

As mentioned above, one of the tasks of testing is to check the “logic” of opening and closing trades, the work of money management — automatic placement of pending orders fixing losses and profit. Thanks to the visualization option, the trader can personally observe these processes in the “high-speed run” mode of trading sessions.

The “Visual mode” option offers the user to choose the inclusion and duration period of the trading demonstration.

Setting the above settings allows you to simply press the start button of the test, leaving out the “Spread” parameter, where the default value is “Current”. This can lead to unreliable results for two reasons:

  • When testing at the weekend when the market is closed, the spread on the instruments may be implausibly overstated
  • In real trades, the spread can change, besides there will always be slippages, delays affecting the entry and closing price of the transaction

Sometimes traders input the spread cost manually, higher by one point of its real value, in order to somehow take into account the losses described above.

Launching the Expert Advisor Testing

After choosing the method of modeling the trading history and the length of visualization segment, set a fixed lot size equal to 0.1 in the EA input tab. This will help to display the dimension of the test report indicators in points, which will make the analysis of test results convenient.

Testing starts by the “Start” button and passes automatically, displaying only the segment selected on the chart above. You can pause (1), accelerate (2), reduce or expand trades by moving the slider (3).

If the “every tick” method is selected, the candles are recreated in the tester and the price produces fluctuations, almost with reliable accuracy, which allows to display trades not at the opening and closing price, but directly “inside” the candle.

After the test is finished, new tabs are added to the service, which were not present at the tester startup stage: Journal, Graph, Results and Report.

Analysis of the Expert Advisor Test Results

Preliminary evaluation of the effectiveness of the trading algorithm is carried out:

  • Generalized, with the help of graphical analysis of the yield curve — equity
  • Mathematically, by checking the correspondence of the obtained parameters with valid theoretical values
  • Step by step — considering each trade on the chart and in the results table

The stability of the EA code is determined by the tester log.

“Testing finale” Anomaly

At the final stage of testing in the Metatrader 4 strategy tester, the service performs a “trading breakout”, i.e., forced closing of orders with an actual loss or profit. While testing medium-term, long-term strategies or Expert Advisors practicing order grids, as in the case of VR Smart Grid under consideration, the trader can see an inflated loss at the end of the test, which will be reflected in a sharp drop in the curve of profitability — equity (equity).

Results tab

The Results tab contains a detailed description of the completed or modified trade transaction, as well as pending orders and trading results.

All actions of the Expert Advisor’s automatic strategy have a sequential numbering, which is contained in the first column for easy navigation when searching for work failures, as well as the time of operation, located in the second column.

Numbering of trades is contained in the fourth column “Order”. When modifying limit placed orders, it does not change, for example, the yellow marker marks the placing of the second limit order for sale, so the column contains the number 2. It is repeated in the following line: due to the change of the previous Sell order, the robot added a related stop loss order to limit losses in case of an unfavorable price movement.

The trade type is determined by the third column, the operation of the money management unit of the strategy is displayed in S/L and T/P (stop loss, and take profit) numbers. The “Price” column shows the price level of pending or executed orders on the market, “Balance” – the dynamics of the deposit changes.

In the above example of testing the VR Smart Grid Expert Advisor, the trader should pay attention to how the volume increase and the trailing stop is rearranged after the positive change in the in the direction of the open trade and check on the chart whether these operations coincide with the logic of the robot algorithm.

Graph tab

The Graph tab is divided into two fields. The first one contains two lines: balance (blue) and equity (green). The balance changes only when positions are closed, and the current funds change depending on the current values of accumulated profit or loss, which explains the mismatch of these curves. The second window, located at the bottom, displays a histogram of position size, it will be constant for a strategy using a fixed lot opened by trading signal of the robot. In this example, VR Smart Grid Expert Advisor works on a complex grid strategy using position increment, which is displayed with different height of columns.

Report Tab

Report” is the most important tab, objectively, by the numbers, determining the results of testing. First of all, you should pay attention to the quality of trading history modeling (1), sometimes it is difficult to achieve 90% accuracy, so the EA should be checked on a demo account.

Simulation errors will be displayed by:

  • Red or grey stripe
  • A number of candles that do not coincide with the chart on which the auction is conducted
  • Percentage ratio and green bar of properly recreated candles or bars

The length of the tested period is indicated by the number of candles and timeframe, in this example it is Н1. The line below (2) contains the initial deposit and spread set by the user prior to testing.

Line (3) defines the strategy results in terms of total net profit, gross profit and gross loss, but the following parameters are by far the most important:

  • Profit factor
  • Expected payoff, which is calculated by the formula:

The losses and profits in the strategy are posted in line (4):

  • Absolute drawdown — maximum real loss
  • Relative drawdown — the maximum loss obtained from a single open position

Other parameters are not as important as:

  • Total number of trades — indicates whether the test length is sufficient or insufficient
  • Percentage of loss and profit trades

The rest of the report is a kind of “collection of records” for the biggest test losses and profits, where you should pay attention to the maximum series of continuous trades closed in the negative.

Journal tab

The journal is a statistical step by step report on the work of the Expert Advisor. Unlike terminal logs, it does not contain service messages (information about robot start, shutdown, etc.), there is only a description of trades.

The log will definitely display code errors if any are found. If this happens, you need to contact the developer or download the Expert Advisor elsewhere.

Saving and Analyzing Test Report

By right-clicking on the Report, Results, and Graph tabs, you can save them for further analysis.

In the drop-down menu one can choose from options of copying or saving to a file, the path to which the trader chooses independently or agrees with the default option.

Copies are needed to compare with other test options for which you will need to select other options or settings.

What to look for

The main goal of testing is express assessment of the Expert Advisor, so on the first tab “Chart” the trader should observe the growing equity line. At the same time, the stability of earnings is guaranteed by indirect indicators:

  • Smooth growth of the capital line, with no sharp growth or failure of the curve
  • Trend tangent inclination angle of 30-45 degrees

On the “Report” tab, first of all, we pay attention to the number and percentage of profitable trades

  • The higher the number of closed trades is, the more reliable the received report parameters are
  • The ratio of profitable trades should be at least 60% for intraday strategy and above 70% for medium- or long-term trading system

A large number of positively closed orders can result in a loss if the trader “forgets” about such parameter as profitability:

  • The resulting profit and loss ratio, ideally – should be higher than 2

This figure can be achieved by controlling the size of stop losses — orders limiting loss, relative to automatically fixed profit, the size of which is determined by pending orders — take profit.

The table on the Results tab shows the totals for each positive and negative trade. Studying random sampling will help to understand the logic behind stop loss and take profit size. If the algorithm contains too high losses, their series can “kill the deposit”.

The parameter “continuous loss trades” will give an idea of the possible length of a series of negative trades.

Analyzing the results above, the trader should understand that the task of the tester is the rapid analysis of the robot. Testing proves only the absence of code errors in the Expert Advisor and the existence of a “workable” trading algorithm.

The real profitability of the strategy can’t be measured accurately due to:

  • Insufficiently accurate emulation of historical quotes movement
  • Failure of the service to take into account market circumstances of trading in full

The fluctuation of exchange rates or other instruments of the Forex market is ensured by a continuous flow of customers trades, so-called ticks. This information is stored on the broker servers, to which the Metatrader trading platform is “tied” to. Despite the versatility of the program, each broker independently engages in filling, i.e. collects its own version of quotations.

When you start the tester, each candle (or bar) is emulated — filled with ticks according to the server, it is millions of trades that cannot always be accurately repeated in full. The program will remind it on its own, if the trader chooses this option of testing.

Even with 99% accuracy of candles (or bars), the tester will not be able to consider:

  • Spread fluctuation, which is not a constant – the broker always reserves the right to expand this parameter upon news release
  • Various technical overlays — failures of quotations coverage, loss of archival data
  • Slippages in execution of trades

Based on the above, it becomes clear that despite advertising the tester as an ideal tool for determining the profitability of the strategy, the result of real trading will be very different from the received figures. Use the received profit data to set test parameters on a demo account as close as possible to real trading. Only it can accurately determine the real profitability of the Expert Advisor.

Testing the Expert Advisor on a Demo Account

Running the EA on a demo account provides the greatest reliability of the test results, but this method requires considerable amount of time. In addition, it is advisable to use a VPS server when testing.

What is a VPS server?

VPS server is a service that has appeared in hosting providers with the development of automated trading. The company provides traders with remote access to the Metatrader platform installed on its own powerful data center servers.

The operation of the Expert Advisor algorithm depends on a continuous Internet connection, by which the robot manages the placed pending and triggered orders, according to the the logic of the trading strategy.

Disconnection or shutdown of the Metatrader 4 terminal leads to a failure, the user will have to close open and cancel pending trades, after its restart. If at this moment the trader is not near the computer, the trades will remain “hanging” on the broker’s server and can cause unlimited loss.

VPS server is used to allow trading to take place automatically without the risk of any failures. Stability of operation is guaranteed by:

  • The company is the owner of the data center, for which this is the point of business
  • Locating broker and trader servers in the same place

The latter fact gives an additional advantage to the user of VPS server, increasing the speed of execution of orders due to smaller ping size and faster changes in quotations.

The hosting provides full technical and consulting support as well as assistance in setting up VPS server, so the service can be used with any level of knowledge.

How to choose the right demo account type and amount for strategy testing

Forex brokers provide traders with a choice of different types of accounts designed to optimize fees. These conditions are fully duplicated in the demo accounts.

Testing the Expert Advisor on a demo account should not differ from real trades, so the deposit type and amount must match the real Forex trading account which you plan to use advisor on. This question should be solved by the trader independently before the first start of the robot, based on the algorithm of the trading strategy, or it can be taken into account in the instructions/recommendations attached to the Expert Advisor.

Sometimes they pursue advertising purposes for affiliate earnings – developers recommend a specific broker even, so we will give a brief overview of the main types of accounts.

In the Forex market brokers offer 4 different options for payment of fees:

  • Fixed spread
  • Floating spread, sometimes for advertising purposes called “zero spread”, so this word is often marked with a star
  • Cent accounts
  • “Islamic” or “swap-free” accounts

Swap is a daily charge/withdrawals of a leverage fee. It is calculated as the difference in the rates of the central banks of the countries that own both currencies in the pair. Broker, like any bank, withdraws interest for the loan on the sold currency, at the same time paying interest on the purchased currency.

For example, selling EUR/USD looks like buying dollars for euros sold. The European Central Bank holds almost zero rate, so interest for the use of the euro will be zero, and on the amount of purchased US dollars fee will be charged for each day at the rate of 2.5% annual. This is rather low income or loss, so “Islamic or “swap-free” accounts do not play a significant role in choosing the demo mode of the Expert Advisor testing.

A cent account is opened by traders trading for an investment amount not exceeding $100, which Metatrader 4 will present as 10000 cents. This “cent transformation” of the deposit is necessary when trading vis Expert Advisors by a grid strategy (placing multiple orders against the trend) or Martingale (increasing the order size after every loss-making transaction). To run it on any standard account you will need a deposit of $1000, in the “cent version” $100 will suffice.

Fixed spread accounts are selected by traders who launch robots once, twice a day or rarer. The average profit from the transaction makes the fee negligible, and the calculation of expenses is simple, it is enough to multiply the spread by the number of trades

Intraday, short-term or scalper strategies with a large number of trades per session use floating spread accounts. They are presented under many abbreviations: ECN, NDD, STP or DMA. The name determines the method of execution of the trade and the mechanism of spread formation, the subtleties of which are described in the accompanying specifications of the account.

If a trader does not understand dealing desks, glasses, rules of market execution of orders, he should not use a scalper robot, which in the absence of knowledge of intricacies of intraday trading will kill the deposit in one day.

The amount is determined by the results of testing in the strategy tester. The first part of the description defines the tactics of launching the Expert Advisor with a fixed trade size of 0.1 lots. This selection allows you to equate the maximum drawdown parameter from the “Report” tab with the currency pair exchange rate points.

In the example of VR Smart Grid testing the result was 155.38, which means that the robot must “withstand” the loss:

  • Of $15,54 when trading 0.01 lot, the margin for which is $10
  • Of $155,38 when trading 0,10 lot, the margin requirement for which is $100

The trader can read how to correctly account for losses from a mathematically justified point of view in Ralph Vince books, but the easier way to determine the size of the deposit is to multiply the number of maximum drawdown on the maximum series of loss-making trades and then apply the coefficient of 3.

In our example you will get the following deposit amount:

15,4 x for maximum consecutive loss series (4) x 3 = 186,45

This means that when testing the VR Smart Grid Expert Advisor, the amount of deposit on the demo account should be:

  • For trading 0.01 lot – $186,45
  • To trade 0.1 lot – $1864,56

The coefficient is chosen empirically and means the triple maximum margin, so the higher it is, the more stable is the strategy.

How to choose the number of currency pairs to test thean Expert Advisor on a demo account?

Often trading algorithms are written for specific Forex instruments, this fact is highlighted in the settings or recommendations to the Expert Advisor. If the strategy is universal, the robot testing on the demo account should be based on:

  • The planned amount of investment determined by the deposit volume according to the calculation method above
  • Trading frequency in the strategy
  • Testing goals

The Metatrader 4 platform allows you to run as many copies of the Expert Advisor as many instruments the broker offers. A large number of instruments in theory diversifies the strategy, compensating the loss on one pair with profit from the other.

In practice, all movements in the Forex market are subject to the laws of correlation — falling and growth of currency pairs coincide, especially in moments of global macroeconomic events. Therefore, choosing a large number of instruments only multiplies the load on the deposit instead of the diversification expected.

Before increasing the number of currency pairs, the trader will have to return to the strategy tester again and determine the maximum loss for each pair in order to take it into account when testing the Expert Advisor on the demo account. The trader will have to increase the amount of investments or decrease the volume by allocating a trading deposit separately for each currency pair, calculating the reserve according to the formula described above.

Tthe situation of running the Expert Advisor on medium- and long-term strategies, provided that different classes of instruments are selected, can be an exception: currency pairs, indices, commodities and raw materials. If the run on the strategy tester shows the frequency mismatch of trades on the selected instruments on the “Visualizations” or “Results” tab, the trader can calculate one deposit for all instruments. by selecting the average drawdown size and using the coefficient of 5 (instead of 3) to calculate the deposit size.

If the user is faced with the task of finding the most profitable currency pair for the Expert Advisor during testing on a demo account, then he can run many instruments using larger size of the deposit than is planned for real trading. However, this process will lengthen the tests on the demo account – a second stage will be required, where only the selected pair will be tested separately, with the planned deposit.

How to determine a timeframe — a trading period?

The timeframe size — the time period represented on the chart by a candlestick or bar determines the “accuracy” of the EA trades, so this parameter is initially set up by default or is reflected in the recommendations.

Some strategies implemented in robots have scalability, i.e., the trading algorithm can work on different time periods. Before testing the Expert Advisor in Metatrader 4, the user must determine what period he will use in real trades and choose the same in the demo account settings.

The size of timeframes is standard: 1,5, 15, 30 minutes; 1 or 4 hours; higher intervals: day, week, month.

The choice of lower, minute, periods assumes a higher frequency of trades, often used to “overclock” the deposit. If the trader does not have large funds and sets the goal of “fast earnings” in the market, he will choose minute intervals. This will mean intraday trading, where the following restrictions must be used:

  • Trading time limit to avoid inactive trading segments during the day
  • Ban on moving positions “overnight” and over weekend

The choice of an hour timeframe is a medium-term strategy, the daily one is considered long-term, candles per week or month are seldom selected by traders.

The fluctuations in the Forex market have a fractal structure, which means the similarity of cyclicity and pattern shape within one hour and within day or week. This knowledge allows the trader to deliberately choose a shorter period to speed up the Expert Advisor test on a demo account. Profitability on small timeframes means that the strategy will definitely “pass” on higher periods.

How to change and apply the settings of an Expert Advisor?

When changing timeframes, the trader should take into account the interconnectedness of their size with the EA settings. Inside the robot, a trading system can be programmed, whose periods are synchronized with calendar data, the dimensions of automatically constructed levels are “tied” to certain percentage changes in exchange rate, etc.

In order for the strategy to work effectively on custom timeframe settings other than those set by the developer, the trader should understand the mechanism of placing trades, understand the composition of indicators or other principles used for the formation of trading signals by the robot. This will help you to select and synchronize the Expert Advisor parameters when any changes are made to one or more settings blocks.

First of all, the developer’s variants are tested on the demo account.

The ability to change parameters independently is limited by the Input Parameters tab. Coders – the creators of the robot – bring in this window only those settings that a trader can change without the risk of “destroying” the algorithm efficiency.

If a trader is not familiar with the implemented trading strategy, he can find its analogues in specialized forums. If there is convincing evidence about the operability of certain parameters included in the Indicator Expert Advisor, they can be changed in the robot settings.

How to attach an Expert Advisor to selected instruments?

The EA is added to the chart of the instrument by simple dragging from the Navigator window.

Attachment will automatically open the EA settings. Most of them are accepted by trader by default or modified according to the instructions attached to the robot. Adjustment of the strategy should be carried out using only ideas of the trading system proven in the tester, as well as on demonstration and real trading in Metatrader 4.

After installing the Expert Advisor on the chart, the trader should pay attention to the emoji appearance in the upper right corner – a smile means successful start the robot. Sad emoji indicates problems with settings.

Metatrader 4 platform for working with Expert Advisors requires the inclusion of additional options. They are located in the Tools -> Settings menu and are installed once, then are apllied for any new robot.

In the window that opens, find the “Expert Advisors” tab and select (enable) all items by clicking on them with the left mouse button.

Click the “OK” key and go to the “Properties” setting of the robot, they are available by right-clicking the indicator on the chart, in the drop-down menu of the “Expert Advisors” option.

Allow the EA to trade by initializing the option with the appropriate name and pressing “OK”.

The rest of this settings window is used “by default” unless otherwise provided by the instructions that come with the robot. In this case, the trader can connect libraries, limit trade in one way, etc.

How to choose the correct period of Expert Advisor testing?

Testing process on the demo account should give the trader understanding of what performance the robot will show in any “state” of the Forex market, especially in “vulnerable” areas for any trading system. These include:

  • Flat — for trend systems
  • News — for range trading strategies
  • Impulses – for trading on levels “breakthroughs”

Test data, which includes only continuous growth or decline, for trend strategies are unrepresentative, as robots incur losses on flat. In this case, the trader must initially visually determine the average length of this type of oscillations using historical quotes and wait for the same period on demo account.

Trading in the range is mainly conducted at the Asian session, which involves the least number of Forex traders, which guarantees no trends. The situation changes drastically with the release of important unpredictable news in China or Japan, fluctuations caused by other publications can be avoided by predicting them in advance thanks to information from the economic calendar.

In this case, the number of news cannot be predicted accurately, so the trader should rely on the empirically calculated average result. Evaluate losses from unpredictable movements will help the results of trading during the release of important economic indicators, which the trader avoids at real trades. The time of their publication is known beforehand, and the number of sessions to test the Expert Advisor should be equal to the average result of the appearance of “unexpected” news.

Impulse trading is placing pending orders at important price levels in anticipation of strong exchange rate changes in a short period. They can be “provoked” by news or predicted by technical analysis methods. During testing of an Expert Advisor for impulse trading, the trader needs to wait for a symmetrical number of buy and sell trades (breakthrough of the “down and up” level).

Advantages and disadvantages of Expert Advisor testing on Forex demo account

Forex demo account is a 99.9% guarantee of creating conditions similar to real trading, which allows you to rely on the result shown by the Expert Advisor. The trader chooses the account type, deposit size, timeframe and can predict the profit and loss of future investments in the selected robot.

The only downside of this type of testing is the duration, the EA must pass multiple stages of trading, and the trader wait for the trend, the volatility jump on the news and other Forex market states on which the size of the greatest possible loss depends, as well as to trade a “calm” period equal to these periods afterwards. This helps to understand the rate of recovery of the deposit after a series of negative trades and correctly determine the size of the trading lot and the reserve of the investment.

Conclusion

Testing is an obligatory part of the adoption process of any new trading system, especially important when you intend to automate trading. During the analysis, the trader will get a visual idea of the mechanism of opening and closing positions, the theoretical scale of loss, the share of profitable trades.

At the same time, the strategy tester is not a reliable indicator of the Expert Advisor’s performance for a number of reasons mentioned above. Reliable data will give real trades, which at the first stage need to be replaced by the period of operation of the robot on the demo account, in order to prevent loss of deposit.

The tested strategy should be put in the market using Metatrader installed on a VPS service for reliable round-the-clock Internet provision and protection against technical failures in power networks or on broker servers.

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Advantages of MT4

The MetaTrader 4 platform is one of the most globally recognized and prestigious trading platforms used by countless investors from around the world. It offers online trading on a number of devices, from iPad and Smartphone to traditional desktop trading, and is considered to provide benchmark standards within the online forex trading industry, thanks to its unique benefits and features.

Also known as MT4, it has been highly rated in countless online trading reviews thanks to its efficient tools, multiple timeframes – from one minute (M1) up to one month (MN) – and numerous currency pairs, commodities and other financial instruments to trade. It presents endless benefits to traders of all levels, which is why it is the platform of choice for so many people. Its popularity comes largely as a result of its full customisability, its complete range of trading tools and the infinite possibilities that it presents.

If you wish to trade on the MetaTrader 4 platform then you will need to sign up with a forex broker that offers MT4 forex trading. The MetaTrader 4 platform is free to download and takes just a few minutes to install on your PC, laptop, smartphone or tablet. Once you have installed the platform and opened an account, you will be able to begin trading straightaway.

Some of the many benefits of the platform are:

Powerful software

MT4 forex trading offers some of the most powerful trading in the world. Due to the international usage of the platform, the server is able to support tens of thousands of trades at a given moment while processing hundreds of different financial instruments. Trading forex on the MT4 platform is therefore incredibly accurate and precise, meaning that the prices you are quoted with are provided in real-time.

Trading safety and security

All forex trading on the MT4 platform is carried out in the safest and most secure environment as trading involves transferring funds and private account information every single day. Thanks to a solid security system including 128-bit data encryption between the trader and the server as well as the use of RSA digital signatures, all personal data is kept out of danger from account hacks. Further still, the investor’s IP address is entirely concealed, ensuring the system cannot be hacked.

Technically advanced

Regarded as one of the most advanced pieces of trading software in the world, the MT4 platform enables traders to perform accurate technical analysis as it features in-depth charts, algorithms and graphs to provide real-time rates at competitively priced spreads. In addition, automatic alerts, daily market reports and data analysis are provided at the click of a button, meaning that traders do not have to go far to receive important information and updates. You can customise multiple charts simultaneously and analyse any custom indicators all through the convenience of the MT4 trading platform.

The platform offers 30 built-in technical indicators, over 2000 free custom indicators and 700 paid ones, ensuring market analysis at any level of complexity. These come with adjustable graphical settings and interactive charts that allow you to stay afloat of current market activities.

Full customizability

The MetaTrader 4 platform is ideal for traders of every level as it is completely flexible, extremely user-friendly and fully customisable for a unique trading experience. For example, you can add or remove the grid lines at the back of the trading platform. You can also make the bars bigger or smaller according to your preferences, or change from bars to candlesticks for easier reading.

Right click in the chart area and click on ‘Grid’

Other adjustable elements of the platform include the bear candle, bull candle, stop levels, bar up, bar down and much more. There are numerous ways to customise the colouring during MT4 forex trading simply by right clicking on the chart, selecting ‘Properties’ and then customising every aspect of the chart based on your desired colours. The ability to draw support and resistance levels, trend lines or channels is also very straightforward – the possibilities the platform presents to traders are practically endless.

Different trading orders

The benefits of the MT4 platform do not stop there. This fully customizable and intuitive user interface meets the needs of every type of trader, whether you wish to immediately execute trades or prefer to place pending orders. You can also place trailing stops and stop loss and take profit orders, all of which are expedient features designed to minimize risk. No matter how simple or complex your trading strategies might be, the MT4 trading system allows you to implement them with ease.

Demo account

If your forex broker offers the MetaTrader 4 platform then it is recommended to test drive the platform first on a demo trading account to see if it performs all the tasks you need it to perform. With the demo account you can also familiarise yourself with the functionalities of the platform and trade under simulated market conditions before opening a live forex trading account.

Implement Expert Advisers

MT4 forex trading also lets traders implement Expert Advisers if preferred, which are specially programmed softwares integrated onto the MT4 platform. Using MQL4 language, they allow automated trading to take place and can be programmed to trade independently through your trading account.

If you find it difficult to find the time for manual trading then you can use Expert Advisors through the MetaTrader 4 platform. Expert Advisors are ideal in that they can be pre-programmed based on your personal trading requirements. From here, simply attach the EA to the MT4 platform and leave it to trade on your behalf, scanning the market on a 24-hour basis and eliminating any obstacles in analytical and trading activity.

Read our article to learn more about automated forex trading software.

Multilanguage service

Another reason why the MetaTrader 4 platform has stood the test of time as one of the world’s greatest trading platforms is due to its multilanguage service. Wherever you are from in the world you can set the platform to your preferred language (there are more than 20 available) to eliminate trading errors due to lack of understanding of foreign terms and notions.

Click ‘View’ then ‘Languages’ to select your preferred language. Restart the programme for the changes to take effect.

The Market Watch Window

During online trading you will undoubtedly need to keep an eye on the market. You can do this by viewing the Market Watch window which can be found by clicking ‘View’ then ‘Market Watch.’ The Market Watch window displays the live exchange prices of all the currency pairs, commodities and indexes available to trade on MT4. Simple place the cursor on the Market Watch window, right click then click ‘Show All’. You can also remove currency pairs that are irrelevant to your trades. Simply highlight the pairs you do not need, right click and select ‘Hide.’

Get started with MetaTrader 4 today

With its endless educational resources, technical analysis tools, user-friendly interface and much more, the MT4 platform remains an attractive option for novice and veteran traders alike. Take advantage of MT4 forex trading and begin trading today with the MetaTrader 4 platform.

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Risk warning: The information on the website is not targeted to any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Admiral Markets Pty Ltd (ABN 63 151 613 839) (“Admiral Markets”) holds an Australian Financial Services Licence (AFSL) to carry on financial services business in Australia, limited to the financial services covered by its AFSL no. 410681.Admiral Markets Pty Ltd is fully owned by Admiral Markets Group AS holding company.

The information contained in this website is general information only and does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. Before deciding to invest in any products or services offered by Admiral Markets we recommend you seek independent advice and ensure you fully understand the risks involved before trading and carefully consider your objectives, financial situation, needs, and level of experience. Before you decide whether or not to pursue any products or services referred to in this website it`s important for you to read and consider the relevant Financial Services Guide and Product Disclosure Statement. The Financial Services Guides contain details of our fees and charges. All these documents are available on our website, or you can call us on 1300 889 866.

Admiral Markets is not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance such information.

Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. The high degree of leverage available can magnify profits and as well as losses. You can lose more than your initial deposit. Before trading, please carefully consider the risks and inherent costs and seek independent advice as required. There are also risks associated with online trading including, but not limited to, hardware and/or software failures, and disruptions to communication systems and internet connectivity. Admiral Markets utilises numerous backup systems and procedures to minimise such risks and reduce the duration and severity of any disruptions and failures. Admiral Markets is not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly as a result of failures, disruptions or delays.

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Конец эпохи MetaTrader 4

Молния: Провайдер MetaQuotes Software прекращает продажу популярнейшей торговой платформы и выдачу соответствующих лицензий новым клиентам.

Крупнейший разработчик торгового софта для внебиржевой индустрии, компания MetaQuotes Software Corp., опубликовало драматическое, но, в то же время, ожидаемое сообщение о том, что прекращает продажу самой популярной среди внебиржевых трейдеров торговой платформы MetaTrader 4 и соответствующих лицензий.

Предыдущая «четвертая» версия торгового терминала MetaTrader была выпущена еще 12 лет назад и практически все это время удерживала статус популярнейшей платформы среди участников рынка Форекс. А в начале 2020 года провайдер MetaQuotes завершил разработку этой платформы. Теперь, три года спустя, компания официально прекращает продажи этого программного обеспечения и останавливает продажу лицензий платформы MT4 новым клиентам, включая предоставление дополнительных серверов для уже существующих клиентов.

«Торговая платформа MetaTrader 4 была выпущена более 12 лет назад. Ее архитектура была сформирована под ограничения того времени и не позволяет удовлетворять возрастающие требования индустрии и запросы современных брокеров и трейдеров. Поэтому еще в начале 2020 года мы остановили разработку MetaTrader 4. Сейчас, спустя 3 года, мы останавливаем продажу продукта. Новые клиенты не смогут приобрести старую платформу, а существующие — дополнительные серверы к ней. При этом брокеры МetaТrader 4 смогут заказывать дополнительные White Label-терминалы и рассчитывать на полноценную техническую поддержку. Для платформы также будут выходить обновления безопасности и исправления ошибок», говорится в сегодняшнем релизе провайдера софта.

«Все новые функции будут появляться только в MetaTrader 5. Она обладает современной архитектурой и полностью покрывает функционал старой платформы (хеджинг, отчеты по позициям). Новая платформа имеет высокую производительность, масштабируемость и обеспечивает возможность работы на многих рынках — Форекс, CFD, акции, фьючерсы, металлы и криптовалюты. Вокруг MetaTrader 5 уже выстроена большая инфраструктура решений сторонних разработчиков. Технологические компании Gold-i, oneZero, PrimeXM, Tools For Brokers и другие уже адаптировали свои продукты, они готовы помочь брокерам в миграции на новую платформу.

Совсем недавно в MT5 были добавлены синтетические инструменты и поддержка Анти-DDoS провайдеров. На подходе еще несколько важных обновлений, которые дадут брокерам принципиально новые возможности. Учитывая все это, мы приняли решение остановить продажи устаревшей платформы, которая не может больше развиваться», добавили в MetaQuotes Software.

Напомним, что в сентябре 2020, редакция Forex Magnates провела среди пользователей ресурса опрос на тему «Какой платформой вы пользуетесь?». Тогда, по результатам голосования, с существенным преимуществом победила платформа MetaTrader 4, предпочтение которой отдали 63% участников. Флагманский продукт того же провайдера, платформа MetaTrader 5, заработала 19% голосов участников голосования. Вместе с тем, 21% проголосовавших пользуются «другими», не указанными в списке торговыми платформами. Таким образом, можно заключить, что трейдеры, как и многие розничные потребители из других секторов, отдают предпочтение проверенным временем технологиям и не торопятся переходить на другое решение в том же темпе, что и институциональные пользователи.

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