MT4/MT5 Strategy Tester: How Reliable Are the Backtest Results?
I've seen mixed opinions on the reliability of MT4/MT5's Strategy Tester when it comes to backtesting EAs and strategies. Some traders trust it blindly, while others argue that it's far from reflecting real market conditions.
A few concerns that come up:
Tick Data Quality: The default data isn't always accurate, and slippage/spreads in live trading can be very different.
Execution Differences: Backtests don't account for real execution delays, requotes, or liquidity issues.
Overfitting Risk: Optimized backtests may show excellent results but fail in live conditions.
Fixed vs. Variable Spreads: Many traders overlook the impact of real-time spread fluctuations.
So, how much weight do you give to MT4/MT5 backtests? Have you found them to be reliable, or have you seen major discrepancies between backtest and live performance? Let’s discuss!
