Strategy Tester

Beginner Questions
1

Hi everybody,

I saw a “strategy tester” button included in the MT4 trading platform, anybody can tell me what is a strategy tester and how can i use it?

Thank you

2

With the MT4 strategy tester you can test automated trading strategies aka Expert Advisors. You select an EA set the parameters and let MT4 run a backtest based on historic price data to see what the outcome might have been if you traded the EA live for the selected period of time.

3

Thanks for the explanation. I saw two selections displayed on the tester, one is MACD, another one is moving average. I had try to select one of it and back test the previous price movement, both selections tend to lose money every past month. Seem like if we trade by using the MACD and MA indicators it is not a good idea.

4

Those are just two basic Expert Advisors provided by MT4 to illustrate how things work. They are not intended to be used for trading.

If you want to read a bit more about backtesting: MT4 backtesting.