Today, I have quick tip on how to do a little backtesting in MetaTrader 4 while you are waiting for your setups to give you a signal to enter the market.
There are some limitations to this method, but it is free and easy to use.
Check out the video below to find out how to do it. I discuss the other benefits and limitations after the video.
Sometimes you want to see what a trade looks like as it sets up, but you do not want to wait for it to happen in real time.
This trick allows you to go back and step through a setup and give you a much better idea of how you would have actually reacted to it.
Since you are in Metatrader already, you don't have to worry about getting custom indicators for other testing platforms. You also don't have to worry about time differences or candles looking different on other platforms.
The only limitation would be the amount of historical data that is available to you.
Metatrader only loads a certain number of candlesticks, so you would need to use another platform like Forex Tester to test over a longer period of time.
While this is a nice tip, I find that while using the F12 to step bar by bar, the data window and my indicator values are not updated every time I press. Have you noticed this also?
Yes, one of the limitations of MT.
Hmmmmm….sounds like a bug to me 🙂
Hi Hugh my name is Sandra Bruce. I am from South Africa and my goal is also to become a full-time trader but some how I am do not seam to even make it on my demo account. What advice do you have for me I am on the demo now for about 3 months but still loose more than I win. Waiting to hear from you. Kind regards Sandra
Hi Sandra,
OK, this is what every trader goes through, you are not alone. Here are the basic steps that you have to follow:
1. Figure out your Trading Personality. This blog post will help you do that: https://www.tradingheroes.com/own-your-trading-personality/
2. If you are primarily a technical trader then pick a system that matches your Trading Personality and backtest it until you get a result that you are happy with. Here’s the backtesting guide: https://www.tradingheroes.com/forex-backtesting-guide/
3. If you are primarily a fundamental trader or you have a backtested technical system that you like, then it’s time to forward test in a demo account. Here’s the guide for that: https://www.tradingheroes.com/forex-forward-testing-guide/
4. Next, you will need to start working on your mindset. Almost every trader I have met has had to work on their mindset. This is different for everyone, but be aware that this is your most important trading tool. It will literally determine your success or failure.
5. If your system works well in demo, then it’s up to you if you want to start trading with real money.
Hope that helps and let me know if you have any questions.
Cheers,
Hugh
P.S. – We go over all of these steps in the Forex Trading Strategy Development Program.