How to optimize an expert Advisor in MT4?

How to optimize an expert Advisor in MT4?

How to optimize an expert Advisor in MT4?

Before you entrust the trade to one or another Advisor, we recommend you to run optimization. That is, to check how profitable it is. And if everything goes smoothly, consider trading on a real Forex account.

In this article, we will show you how to optimize Forex expert advisors in MT4, and how to perform it correctly.

To check the EA's profitability, you need to perform the following actions:

Pass the selected trading robot through the strategy tester, which is available in each MT4.
Set up optimization of the Forex expert Advisor and see what happened.
Test the robot on a demo account.
Try using the expert Advisor on a cent account.

Just note that items 1, 2, and 4 must be completed. As for the third point, its implementation is not so necessary, since testing on a demo account takes a lot of time. This is why some novice traders prefer to skip stage 3.

However, we strongly recommend that before using a particular adviser on a real account, perform actions on all four points, as well as learn below how to optimize the adviser correctly, using the example of Ilan.

The robot can perform well on a demo account and a Forex strategy tester, but on a real account (a cent account refers to real accounts), sometimes the picture is quite different. This is due to price slippage and other factors that are not present on the training account. It is clear that there is no way to do without optimizing Forex expert advisors.
Strategy tester

We chose the Ilan family of Advisors as an example. When " Ilan” is installed in the trading terminal, select the EUR/USD asset. Then you need to select “all ticks". You will also need to specify the time interval within which the most accurate testing will be performed. We chose an hourly timeframe. The testing interval is June 2017.
When all the necessary parameter settings are set, click on the "Start" button to check it in action and wait for the end of the expert Advisor testing process. We left the standard settings for Ilan and got the following results:
The robot opened a total of 255 trades in a month. Net profit was $21.18. the Deposit amount is $10 thousand. The maximum drawdown was 6.57% of the depot. The EA's profitability is 1.08. Moreover, the expert Advisor was not optimized in MT4.
To get a more accurate picture, many professional traders recommend downloading the history of quotes. To open the dialog box, we need to click on the F2 button:
We need to choose our EUR/USD pair timeframe 1 minute:
Now you can click on the "Upload" button. After that, you will see a warning about loading quotes. Click “OK". After some time, the process of loading quotes can be considered complete. Now everything is normal. Click the "Upload" button and wait for the history to load.

Go to the strategy tester and click on the “Start”button. According to the report, the figures have changed slightly:
263 deals were opened. Net profit was $19.52. Profitability is the same 1.08. the Maximum drawdown was $658.43 or 6.57% of the total Deposit. Conclusion: nothing has changed much, so we will resort to optimizing the Forex expert Advisor in MT4 in order to extract the maximum possible profit.
Optimization attempt

The initial settings of the Ilan robot are as follows:So, how to optimize this expert Advisor in MT4? Let's try to change some settings:

Max Trades from 10 to 20;
Lot Exponent from 1.4 to 1.5;
TotalEquityRisk from 20 to 50.
Click the " OK " button. Then we start again. When Ilan optimization was completed, the tester showed the following results:
A total of 282 deals were concluded. The reading profit was $53.39. The profitability of 1.10. The maximum drawdown is 13.90% of the total account value. The Ilan robot was tested from 01.06.2017 to 30.06.2017. In other words, these are the results for 30 days.

What if we test it from the beginning of the year until 30.06.2017? However, we need to optimize the Forex expert advisors in MT4 again – change the DefaultPips parameter (the step between opening new orders) from 12 to 24.

After clicking on " Start” for more than six months, the robot managed to achieve the following results:
In total, the robot managed to conclude 1479 transactions. The profit was $357.77. The profitability of 1.10. The maximum drawdown was 77.16% or $7863.44 with an initial Deposit of $10 thousand. For all grid robots, such a large drawdown is a normal practice. If You are not satisfied with this optimization of Forex expert advisors, you can open the strategy tester and try to change the settings of the automatic robot Ilan. You may be able to output a better optimization.
Conclusion

Above, we not only showed how to optimize expert advisors on Forex and brought out the optimal settings of the Ilan 1.6 Dynamic robot, which showed quite good results. This is why it is so important to understand the parameter settings yourself. After all, this will allow you to exclude possible drawdowns in time.

As a conclusion, we note that the Ilan 1.6 Dynamic grid expert Advisor is absolutely a working trading tool for making a profit on the Forex market. The main thing is to optimize the expert Advisor in MT4 correctly. You can use it within the cent account. But you will need to change the Lots parameter in a big way, say to 0.2-0.3, or even higher. It all depends on the size of the Deposit. In any case, we recommend checking this setting in the tester, and only then trading on a real account.

Also, be sure to select a date of 365 days in the strategy tester, i.e. 1 year, and approach the optimization of the expert Advisor in MT4 more responsibly. In other words, set the above parameters to the maximum, and only then gradually reduce their values to display the optimal settings. Remember that only the one who constantly withdraws the received profit will win. After all, every trading robot sooner or later will merge the trader's Deposit, but during the trade, you can use it to withdraw a decent profit.

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