The MT5 Strategy Tester is powerful, and easily misused. Here is how to get results that mean something.
Setup
1. Open View > Strategy Tester (Ctrl+R).
2. Select your EA, symbol and timeframe.
3. Modelling: choose *Every tick based on real ticks* — anything less interpolates prices and flatters most strategies.
4. Set a realistic deposit and leverage matching your live account.
The traps
- Fixed spread backtests: markets widen spreads at news and rollover. Test with variable/real spread where possible.
- No slippage: assume a little; scalping strategies live or die on this.
- Curve fitting: if you optimized 15 parameters until the equity curve looked perfect, you fitted noise. Prefer few parameters and test out-of-sample — optimize on 2022–2023, validate on 2024–2025.
- Short windows: one year proves nothing. Cover several market regimes, including 2020-style volatility.
Reading the report
- Profit factor above ~1.4 with several hundred trades is respectable.
- Maximum drawdown matters more than net profit for prop-firm use — compare it against the firm's limits.
- Check the equity curve shape: steady with shallow dips beats spectacular with cliffs.
Forward testing
After backtesting, run the EA on a demo account for at least 4 weeks. Live spread, real latency and news gaps will tell you what the tester cannot.