The test parameters need to be checked when running a robot test to ensure the correct information and data is being used. It is important to check the correct Expert Advisor, correct Symbol and correct Timeframe are being used. Checking the date tested and also the Model (what data is being used to test on) is important to ensure the output is reliable. If using the Model “Open Prices Only” or “Control Points”, this can sometimes lead to better than expected (and better than actual) results. Remember, we want a realistic picture of the outcome so that we can feel confident in putting the robot to work for us.

Running The Test

A Quick Snapshot

Once you are happy with the inputs and settings, you can run the test. If you just want to see if the parameters are functioning and trades can be placed, a quick snapshot is a good way to start the testing process. It simply helps to confirm the bot is working and is able to function. Ideally, you want to see data in the Graph and the Report.

A More Visual Approach

You have a couple of options when running the test. One way is to use the Visual Mode, which will display the historic data along with orders, stops and take profits so you can visually assess the way the robot works and if you need to make changes. If the visual mode is running too slow, you can speed up the process by dragging the bar next to Visual Mode to the right during the test. The bar looks a bit like a volume slider and controls the speed of the tester. You can slow it down to see the action play out a little slower also.

Optimized Trading

The strategy tester has a range of features which you can utilize to help understand your trading strategy better, and to test or optimize the inputs of the robot. Since you have already screened for a trading strategy and seen the overall outcome, you may wish to run an optimization.

What Can I Optimize?

Optimization means the strategy will test a range of parameters that you set and provide the end result on each step. For example, if you want to check what the best Take Profit figure to use is, you can run an optimization on this and see what the results show. Let’s say you want to test the Take Profit from between 300 points to 2000 points, checking every 100 points in between. The Strategy Tester will pull data and show the results of each iteration for you to review. Additionally, you can test multiple parameters at a time to find optimum combinations of Stop Loss and Take Profit figures and more.

Considerations When Optimizing

Overoptimizing a strategy could mean that you are testing and refining the sample to heavily, and when the market changes, your strategy may no longer fit the conditions of how the market is flowing. Perfect tests do not always lead to perfect trading in the real world, so it is important to consider if the strategy will continue to perform outside of the testing environment. As an example, perfecting the stops and targets for a tight and low volatility period may not harvest the same results when the market becomes more volatile. Consider alternate market conditions and try test with those considerations in mind.

What is the Goal?

This will vary depending on the trader, but the goal in general is to earn a profit from the strategy. Factors that come into play when deciding the profit and worthiness of the trading strategy include risk tolerance, drawdown, timeframes of being in loss vs timeframe being in profit, consistency of the equity curve, win loss ratio and percentages, number of trades and expectancy per trade. All this may sound a bit complicated, so let’s simplify.

The goal for a trader might be to earn as much as possible. Their drawdown and risk tolerance may be very high which might seem very risky to another trader. A more risk-averse trader might be looking for a slow and steady return with a very low drawdown and risk tolerance, even if the returns aren’t as high. Unless a trader is looking to hedge an alternate strategy in a portfolio, most traders will want to see profitability as a must have. The other data such as win loss percentage and ratios is dependent on what people want out of their trading portfolio.

Testing a robot is a way to check if the strategy you have chosen works on historic data using the parameters and trade conditions you are seeking. The screener allows you to check the basis of the strategy, however it does not factor in things like your stop loss level, take profit level, other entry or exit conditions, check the spread and a range of other inputs that can be tested.

This phase is necessary as it provides more detailed information on the trading strategy. Using the graph and results tab following a test, you can see drawdown periods, wins and losses, dollar risk amounts, win loss percentages, number of trades and other important data.

Thankfully, the screener allows you to fast track the major theme behind the strategy, while the Strategy Tester is used to refine and go into more detail before placing the robot on your trading account.

Access The Strategy Tester

To access the Strategy Tester, you can go to View up in the top toolbars and click on Strategy Tester or alternatively you can use your keyboard to press CTRL and R at the same time to toggle the Strategy Tester on or off. The strategy tester generally appears at the bottom of your platform.

Robots are trading robots developed by InvestorHubFx which can trade the market automatically. These robots help to monitor and take action in the market and take the pressure off your manual trading and time required at the charts. Robots in MT4 are also known as Expert Advisors or EA’s for short.

People use trading robots when they see a strategy that consistently sets up and to automatically trade that setup. Rather than sitting at the screen or listening for alerts, traders using robots will simply set up the trading robot and ensure the parameters are matching what they tested for, so that the robot will trade on their behalf, without the need for them to enter and exit the market manually.

Why Use Trading Robots?

Trading robots can save a great deal of time, remove emotional interactions with the market and remove bias that is sometimes detrimental to traders. Behavioral conditioning is not an issue when it comes to a trading robot, since the robot follows the orders and requirements that are preset, over and over, without a change of mindset or loss of focus.

How To Use Trading Robots?

Trading robots can be easily applied to a chart (drag and drop the file from the Navigator onto the desired chart you want it to trade on). Input the parameters to match your expected trade strategy and ensure the AutoTrade button has a Green play button (not a red Stop button).

If the trading robot is ready and running, you will see a smiley face in the top right corner of the chart. Setting up should be relatively straight forward and easy to do. If you get stuck, you can always jump on our live chat and outline where you are getting stuck so we can assist further.

If the trading robot is ready and running, you will see a smiley face in the top right corner of the chart. Setting up should be relatively straight forward and easy to do. If you get stuck, you can always jump on our live chat and outline where you are getting stuck so we can assist further.

What Other Preparation Do I Need To Do?

In order to set up a robot, you first need to have a strategy to work with. Using the Screener in the InvestorHubFx Navigator is one of the most effective ways of finding what might work. Once you find a strategy that you want to try, you can then test the robot, view the historic trading data based on entries, exits and other parameters. If you are happy with the back test using the Strategy Tester (keyboard shortcut “CTRL R” in MT4 or find in View dropdown header), you can then run the robot on your chart with the same settings as the strategy tester.