To get the best performance out of your Forex Expert Advisor, it’s crucial that you know how to accurately perform the vital functions of Forex back testing and optimization with the Metatrader Strategy Tester. This will help you to avoid investing in dud systems, while maximizing the profits of your proven performers.

So what exactly is Forex back testing and what’s all the fuss about? Essentially, backtesting allows you to simulate the performance of any Forex EA for a historical time period and see how the system would have performed if it was traded then. This will give  you an indication of whether it’s a viable system, and how the system tends to perform over a lengthy period of time. It will also give you many key statistics in addition to the profitability of the system, for example the maximum % drawdown, the profit factor and the average wins and losses of the system.

Forex back testing is often used to optimize a system for maximum profits as well, by testing different parameters to find the most profitable combination historically. So to avoid leaving tens of thousands of dollars of missed profits on the table, you need to learn how to effectively conduct back testing and optimization.

The Benefits Of Forex Back Testing And Optimization

Every wise trader who buys a Forex Expert Advisor will test it to verify that it is profitable first before investing any real money into it. Until you have some concrete results from your own testing, any EA is an unknown quantity extremely risky to trade with because you don’t know what to expect from it. Of course, one way of testing it is to run it on a demo account, but that’s extremely time consuming. You may have to wait months before you can have an accurate picture of its performance, and by then your system will no longer be under warranty. If you discover that it is a dud by then, you’ll have wasted a whole lot of time and money doing something that could easily have been achieved in far less time with Forex back testing.

Compared to demo account trading, Forex back testing can simulate an EA’s trading performance within minutes and give you an accurate picture of not only how profitable it is, but also the key parameters about the system like the profit factor and the maximum % drawdown. Once you know how to do that, you can also test different parameters of the system to find the most profitable combination of system parameters instead of just running with the default version, which will often give you sub par performance. All this can be done by using a built in module within the Metatrader 4 software that most EAs run on called the Metatrader Strategy Tester.

The good thing about the Metatrader Strategy Tester is that you don’t need to know the MQL4 programming language to conduct your own Forex back testing and optimization, but there are still many common mistakes that you can make that will seriously harm your trading profitability if you’re not careful. To avoid making these costly mistakes, greatly speed up the process and ensure that you’re applying the “best practice” when it comes to back testing and optimizing your systems, I highly recommend a resource called the Guide To Getting Rich With Forex Robots’ “Metatrader Back Testing & Optimization Course”.

Why I Recommend This Forex Back Testing & Optimization Course

As a busy Forex trader in addition to many other things, I would imagine the last thing you would want to do is to figure out how to do Forex back testing and optimization from scratch. There are just so many mistakes that you can make in the process that will harm instead of help your profitability, so why not learn from a pro instead of trying to reinvent the wheel?

With the Guide To Getting Rich With Forex Robots’ “Metatrader Back Testing & Optimization Course”, you’re learning from not one but two grizzled veterans from the Forex industry who will guide you through how to do the proper testing and optimization process and maximize your profits from your Forex EAs. I highly recommend this program for you if you are serious about building a long term passive income from your Forex trading.