Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money.
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MT5 Strategy Tester: Backtesting Basics

MetaTrader 5's tester is one of its biggest advantages over MT4. Here's how to use it without fooling yourself.

By UK Broker Forex editorial teamUpdated 5 October 20267 min read

Key features

  • Several modelling modes, including every tick based on real ticks
  • Multi-currency testing
  • Optimisation, including a fast genetic algorithm
  • Built-in forward testing

Modelling modes

ModeAccuracySpeed
Every tick based on real ticksHighestSlowest
Every tick (generated)HighSlow
1-minute OHLCMediumFast
Open prices onlyLow — only for bar-open strategiesFastest

Running a backtest

  1. Open the tester (View › Strategy Tester).
  2. Select the EA, symbol, timeframe and date range.
  3. Choose a modelling mode and set realistic spread and commission.
  4. Set the deposit and leverage to match your real account.
  5. Run, then study the report and equity curve.

Reading the report

  • Net profit — less important than the metrics below
  • Maximum drawdown — can you live with it?
  • Profit factor — gross profit ÷ gross loss
  • Number of trades — too few means unreliable results
  • Expected payoff — average result per trade

Avoiding curve-fitting

  • Keep the number of parameters small.
  • Use the forward-test option to check performance on unseen data.
  • Test across different market periods and pairs.
  • Prefer robust parameter ranges over single "perfect" values.

Frequently asked questions

Is a good backtest proof a strategy works?

No. It shows how rules would have performed on past data. Forward testing on demo is essential.

What is curve-fitting?

Tuning parameters so closely to past data that the strategy fails on new data.

CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading these products. You should consider whether you understand how they work and whether you can afford to take the high risk of losing your money.