Backtesting Trading Strategies: FSB Pro vs MT4
Backtesting trading strategies is one of the most reliable ways that traders use to find if one trading strategy is reliable or not.
Usually, Backtesting trading strategies work best when traders use Expert Advisors or the so-called Robots for trading.
The most common platform for algorithmic trading is MetaTrader. It is free and it provides algorithmic trading where the traders can use automatic robots to execute their strategies.
However, there are some issues when backtesting trading strategies with MetaTrader. For example, the backtest starts from the 100 bar in the History data. For History data details, have a look at the video:
https://www.youtube.com/watch?v=CVTwjFaexQs&list=PLKVhG9CW7OB4LpLLEphZTw3PaFAMfPw0V&index=214&t=0s
So if the strategy uses indicators on higher time frames (longer time frames) there comes the mismatch in the numbers. And on the 100th bar, there are no values for the parameter. The traders fail to do the backtesting trading strategies this way.
Also, in MetaTrader, it is said to have tick data. but it actually doesn't. There is data but it is not stored as real tick data. Also, the algorithm that works while traders are backtesting trading strategies is random.
This means that if in one bar we have SL and TP, the backtest in MetaTrader will show us random results - one of the two.
While using Forex Strategy Builder we have different outcomes and w can select if we want to use a Pessimistic outcome. Or the SL to be hit. This way we know the worst-case scenario.
And with some scalping strategies, that is very important and if traders are backtesting trading strategies on MetaTrader they might see unrealistic results because of that.
This is why it is better to use Forex Strategy Builder Pro:
https://eaforexacademy.com/software/forex-strategy-builder-professional/
There are free videos that will teach you how to perform backtesting trading strategies properly.
More, The tick model is very slow in MetaTrader and it might take you days to backtest a more complicated Expert Advisor.
Better Control points or better to use Forex Strategy Builder Pro.
If you are looking for more professional algorithmic trading education have a look at our Packages:
https://eaforexacademy.com/packages/
★ Forex Strategy Builder Pro with 2 weeks trial:
https://eaforexacademy.com/software/forex-strategy-builder-professional/
★ Test EA Studio with 15-days trial and get the FREE course:
https://eaforexacademy.com/software/expert-advisor-studio/
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