MT4i Trading Simulator

www.mt4i.com
Contents:
1. Overview of the MT4i Trading Simulator ......................................................................................... 2
1.1 Purpose of the Trading Simulator ................................................................................................ 2
1.2 Licence ........................................................................................................................................ 2
2. Installing the Trading Simulator ........................................................................................................
2.1 Installing the Simulator ...............................................................................................................
2.2 MetaTrader 4 settings ..................................................................................................................
2. MT4i account ..............................................................................................................................
. !unning the Trading Simulator .......................................................................................................... 4
.1 Starting the Simulator .................................................................................................................. 4
.2 "dding indicators to the chart ...................................................................................................... #
. $ontrolling the speed of the Simulator ........................................................................................ #
4. Placing trades using the Trading Simulator ....................................................................................... %
4.1 Placing &u'(sell orders ................................................................................................................. %
4.2 Placing pending orders ................................................................................................................ %
4.2.1 Placing pending orders from the chart .................................................................................. %
4.2.2 O$O orders .......................................................................................................................... )
4. Order templates ........................................................................................................................... )
4.4 $losing and modif'ing orders ..................................................................................................... *
4.4.1 $hanging the s(l or t(p on open orders .................................................................................. *
4.# "ccount info ................................................................................................................................ *
4.+ Other features .............................................................................................................................. *
4.+.1 Settings, and non-hedging mode .......................................................................................... *
4.+.2 "utomated tas.s ................................................................................................................. 1/
4.+. 0ndoc.ing the Simulator window ...................................................................................... 1/
#. "nal'sing 'our results ..................................................................................................................... 11
#.1 Monitoring results while the simulation is running .................................................................... 11
#.2 1iewing and anal'sing final results ........................................................................................... 11
+. 2otes on the MT4 strateg' tester ..................................................................................................... 12
+.1 3istoric data, 4unmatched data errors5, modelling 6ualit' etc. .................................................. 12
+.2 4Multi-timeframe5 7MT89 indicators ......................................................................................... 12
Page 1 of 12
MT4i Trading Simulator
www.mt4i.com
1. Overview of the MT4i Trading Simulator
1.1 Purpose of the Trading Simulator
The MT4i Trading Simulator converts the MetaTrader 4 strateg' tester into a tool for practising
manual trading using historic data. :ou can use the Simulator to test how well 'ou would have fared
under particular historic mar.et conditions ; and(or to chec. how well 'our favourite indicators
would have guided 'ou in the past.
The Simulator lets 'ou place mar.et and pending orders, set trailing stops, alter the s(l and t(p on
orders &' clic.ing on the chart, save comple< order definitions as templates, 6uic.l' close all open
orders, plus man' more features which are not availa&le as standard in MetaTrader 4.
The results of a simulation can &e pu&lished to the MT4i we&site, giving 'ou access to the full MT4i
reporting and anal'sis functionalit'.
The Simulator is &ased on a cut-down version of MT4i=s 1-$lic. Trade Management software, which
is availa&le for use in live trading through selected &ro.ers. If 'ou would li.e to &e a&le to use the
Simulator=s functionalit' in real-life trading, please contact us for a list of participating &ro.ers, or as.
'our e<isting &ro.er to contact MT4i at &ro.erservices>mt4i.com.
1.2 Licence
Unless otherwise specified in writing by MT4i.com, this software is licensed for personal use
only. You are not allowed to distribute it to other people, regardless of whether or not money is
changing hands.
The software is provided entirely at the users ris!, and you should chec! it thoroughly before
deploying it on computers trading real money. MT4i.com accepts no responsibility whatsoever
for any loss of any !ind caused by installation or use of the software.
Page 2 of 12
MT4i Trading Simulator
www.mt4i.com
2. Installing the Trading Simulator
2.1 Installing the Simulator
:ou install the Trading Simulator &' running its setup program. This will list all the copies of
MetaTrader 4 on 'our computer, and 'ou simpl' clic. on the ones where 'ou want to install the
Simulator. If an' copies of MT4 are not shown, 'ou can add them to the list using the 48ind MT45
&utton.
:ou will need to restart an' copies of MT4 which are alread' running. MT4=s 2avigator list does not
update until the software is restarted.
2.2 MetaTrader 4 settings
In order to use the Trading Simulator 'ou need to turn on 4"llow ?LL imports5 7and turn off
4$onfirm ?LL function calls59. $lic. on Tools(Options in MT4, and then change the settings on the
4@<pert "dvisors5 ta& as followsA
2. MT4i account
:ou need an account with MT4i in order to use the Trading Simulator. :ou can create accounts for
free at httpA((www.mt4i.com(mtilive.asp<. The Trading Simulator can pu&lish its results to the MT4i
we&site for further anal'sis. If 'ou alread' use MT4i to pu&lish 'our live trading results, 'ou ma'
want to create a second account for use with the Simulator so that pu&lication of the simulated results
does not overwrite 'our live results.
Page of 12
MT4i Trading Simulator
www.mt4i.com
. !unning the Trading Simulator
.1 Starting the Simulator
:ou start the Trading Simulator &' running a &ac.test in MT4 of the 4MT4i Trading Simulator5
e<pert adviserA
Open the MT4 strateg' tester, &' choosing 4Strateg' Tester5 from the 41iew5 menu, or &'
pressing $trlB!.
$hoose 4MT4i Trading Simulator5 from the 4@<pert "dvisor5 list.
$hoose the s'm&ol which 'ou want to practise on from the 4S'm&ol5 list.
$hoose the chart timeframe which 'ou want to practise on, from the 4Period5 list.
$hoose the date range which 'ou want to practise on &' clic.ing the 40se date5 &o< and then
choosing the start and end dates.
Turn on the 41isual mode5 setting.
$lic. on the 4Start5 &utton.
8or e<ampleA
:ou can also control the siCe of the simulated account which 'ou are trading &' clic.ing on the
4@<pert properties5 &utton and changing the 4Initial deposit5 value on the 4Testing5 ta&.
Once 'ou clic. on 4Start5, MT4 will collect the historic data for 'our chosen dates, and then load the
Trading Simulator. 7If nothing happens when 'ou clic. on 4Start5, please chec. the 4Dournal5 ta& of
the strateg' tester. The strateg' tester will not run if it cannot collect historic data for 'our chosen
dates.9
Page 4 of 12
MT4i Trading Simulator
www.mt4i.com
The simulation will then pause so that 'ou can add indicators to the chart &efore continuing. The first
time that 'ou use the Simulator, 'ou will need to enter 'our MT4i username and password. 7These
details are then remem&ered for re-use in future.9
Ehen 'ou are read' 'ou can start the simulation using the &utton in the MT4 strateg' tester 7 9 or
the e6uivalent &utton in the Simulator itself.
.2 "dding indicators to the chart
:ou can add indicators to the simulated chart at an' point, in the usual MT4 wa'sA dou&le-clic. on an
indicator in the MT4 2avigator, or drag an indicator from the 2avigator onto the chart, or use the
4Indicators5 &utton 7 9 on the MT4 tool&ar. If 'ou use 4multi-timeframe5 indicators, please see the
note &elow.
. #ontrolling the speed of the Simulator
The main wa' of controlling the speed of the Simulator is to use the slider ne<t to the 41isual mode5
&o<, which has values from 1 to 2.
The effect of the slider depends on how powerful 'our computer is, how man' indicators 'ou add to
the Simulator, how man' tic.s there are in each simulated &ar etc. "s a general ruleA
1alue 2 on the slider will &e ver', ver' fast.
1alues 2) to 1 will &e &etween 1/ and 2/ times faster than real life 7e.g. an M1# &ar is
simulated in 1 minute9.
1alues 2/ to 2% will &e &etween 2 and # times faster than real life.
1alues &elow 1/ will &e appro<imatel' real-life speed 7i.e. each M1# &ar ta.es 1# minutes9
:ou can e<periment with the slider to find the &est com&ination for 'our computer and how 6uic.l'
'ou want the simulation to run.
:ou can also control the speed of the simulation further using the @"=s Speed8actor propert'. :ou set
this &' clic.ing on the 4@<pert properties5 &utton in the strateg' tester and then altering the 41alue5
propert' on the 4Inputs5 ta&.
Page # of 12
MT4i Trading Simulator
www.mt4i.com
The Speed8actor parameter slows down the simulationF the larger the value, the slower the
simulation. 8or e<ample, 'ou can create a simulation-speed &etween values 1 and 2 on the MT4
slider &' setting the slider to 2 and then adGusting Speed8actor to a non-Cero value.
Page + of 12
MT4i Trading Simulator
www.mt4i.com
4. Placing trades using the Trading Simulator
4.1 Placing $u%&sell orders
Once the simulation is running 'ou can place &u' and sell orders using the large green and red &u'
and sell &uttons.
MT4 will show dotted horiContal lines for each order and also draw mar.ers showing where orders
were opened and closed. The status indicator at the top of the Simulator will show 'our current net
position, e.g. B/.1/ if 'ou are long /.1 lots, or -/.1/ if 'ou are short /.1 lots.
:ou can control the lot siCe on new orders, and set a stop-loss, ta.e-profit, or trailing-stop using the
fields a&ove the &u' and sell &uttons.
:ou can also open calculators for each of these fields &' holding down the $trl .e' while clic.ing on
them. 8or e<ample, if 'ou are trading /.2# lots, and 'ou want a stop-loss which is e6uivalent to H1//,
then 'ou can $trlBclic. on the S(L field and tell the calculator to wor. out the num&er of pips which
is e6uivalent to a fi<ed cash ris. of H1//.
4.2 Placing pending orders
:ou can place pending orders 7limits and stops9 &' clic.ing on the &utton. :ou can choose the
order t'pe and entr' price, stop-loss, ta.e-profit etc.
The entr' price for pending orders can &e defined either as a fi<ed price 7e.g. 1.24#+9 or as a num&er
of pips. 8or e<ample, if 'ou choose a &u'-limit and enter a value of 2/ pips rather than a price, then
the limit order is created 2/ pips &elow the current price.
4.2.1 Placing pending orders from the chart
:ou can also create pending orders from the chart. If 'ou hold down the $trl .e' while clic.ing on
the chart, a small window will pop up letting 'ou create a pending order at the selected price. If the
price 'ou clic. on is a&ove the current price then 'ou can create a &u'-stop or a sell-limitF if the
selected price is &elow the current price then 'ou can create a &u'-limit or a sell-stop. :ou can turn on
Page % of 12
MT4i Trading Simulator
www.mt4i.com
MT4=s cross-hairs 7using the &utton on MT4=s tool&ar9 to show the e<act price which 'ou are
selecting.
4.2.2 O#O orders
The new-order form also lets 'ou place one-cancels-other 7O$O9 orders. There are two t'pes of O$O
orderA
4O$O &rea.out5. :ou specif' two prices, or two values in pips, either side of the current
price, and the Simulator places a &u'-stop and a sell-stop. Once one of the pending orders is
filled, the other is automaticall' cancelled. :ou would t'picall' use this when 'ou are
e<pecting a maGor price movement, &ut 'ou don=t .now whether the move is going to &e up or
down. 8or e<ample, there are man' trading strategies &ased around trading the &rea.out, in
either direction, of 'esterda'=s range.
4O$O reversion5. In this case the Simulator places a &u'-limit and sell-limit, rather than a
&u'-stop and sell-stop. :ou would t'picall' use this if 'ou are e<pecting a move in either
direction followed &' a return towards the current price ; e.g. a &ounce off 'esterda'=s high
or low.
4. Order templates
If there is a t'pe of order which 'ou place regularl' ; e.g. a &u'-limit 2/ pips &elow the current price,
with a 1//-pip s(l and t(p ; then 'ou can save this as a template for 6uic. re-use in futureA
$lic. on the &utton
@nter the details of the order
$lic. on the 4Save template5 &utton and choose a name.
:ou can then 6uic.l' e<ecute that saved template in futureA
3old down the $trl .e' while clic.ing on the &utton
$hoose the saved template from the list
Page ) of 12
MT4i Trading Simulator
www.mt4i.com
4.4 #losing and modif%ing orders
:ou can close all open and pending orders &' clic.ing on the position mar.er at the top of the
SimulatorA the te<t which reads B/.1/, -/.#/ etc.
:ou can close individual orders &' opening the account info ; see &elow.
4.4.1 #hanging the s&l or t&p on open orders
:ou can change the s(l or t(p on all open orders &' clic.ing on the chart. :ou move the mouse over
the price where 'ou want to set the s(l or t(p, and then hold down the $trl .e' while clic.ing ; i.e. the
same method as for placing a pending order.
8rom the window which pops up, 'ou then clic. on the &utton for moving the s(l or t(p. 8or e<ample,
'ou can $trlBclic. on the high or low of a &ar to set the s(l or t(p to that price.
4.' "ccount info
:ou can view information a&out 'our simulated account using the "ccount InfoA clic. on the Tools
&utton 7 9 at the top of the Simulator and then choose 4"ccount info5.
This shows 'our total net profit in the simulation so far, 'our current &alance and e6uit', the profit on
all open orders, the margin usage etc.
The account info also shows a list of all pending and open orders. :ou can close each one of these &'
clic.ing on the icon ne<t to its tic.et num&er.
4.( Other features
4.(.1 Settings) and non*hedging mode
:ou can control the settings used &' the Simulator &' clic.ing on the Tools &utton 7 9 and choosing
4Settings5. This lets 'ou turn on confirmations &efore orders are opened and closed, and also lets 'ou
turn on non-hedging mode.
Page * of 12
MT4i Trading Simulator
www.mt4i.com
I' default, the Simulator follows normal MT4 &ehaviour and lets 'ou have &u' and sell orders open
at the same time. 7Please note that the MT4 strateg' tester allows this even if 'ou are using a 0S
&ro.er who is prohi&ited from allowing hedging.9 If 'ou turn on non-hedging mode, &u' orders close
sell orders, and vice versa. 8or e<ample, if 'ou are long /.1/ lots and place a sell order for /./ lots,
then the &u' order will &e closed and a sell order will &e placed for the &alance of /.2/ lots.
4.(.2 "utomated tas+s
:ou can see a list of all the automated tas.s which the Simulator is runningA an' trailing stops on
orders, plus an' O$O orders. :ou clic. on the Tools &utton 7 9 and choose 4"uto tas.s5.
4.(. ,ndoc+ing the Simulator window
:ou can undoc. the simulator into a floating window &' clic.ing on the Tools &utton 7 9 and
choosing 40ndoc. terminal5. :ou can continue to trade while the terminal is undoc.ed from its chart.
To re-doc. the terminal, clic. on the Tools &utton again and choose 4!e-doc. terminal5
Page 1/ of 12
MT4i Trading Simulator
www.mt4i.com
'. "nal%sing %our results
'.1 Monitoring results while the simulation is running
:ou can monitor 'our results while the simulation is running either &' using the "ccount info, or &'
using the !esults and Jraph ta&s of the MT4 strateg' tester.
'.2 -iewing and anal%sing final results
"t the end of the simulation ; when it reaches the end of the selected period, or 'ou terminate it earl'
using the 4Stop5 &utton in the MT4 strateg' tester ; MT4 will compile its usual &ac.testing report on
the !eport ta&.
The Simulator will also show 'our final net profit. :ou can then get more comprehensive anal'sis of
'our simulated trading &' pu&lishing the results to the MT4i we&site. :ou simpl' clic. on the
4"nal'se trading5 &utton, and the simulated histor' is uploaded to the we&site, giving 'ou access to
the full range of MT4i reporting and anal'sis.
Please noteA if 'ou alread' use MT4i to pu&lish 'our live trading results, 'ou ma' want to create a
second account for use with the Simulator so that pu&lication of the simulated results does not
overwrite 'our live results. If 'ou need to change account at the end of the simulation, clic. on the
&utton and then log in again using a different MT4i account.
Page 11 of 12
MT4i Trading Simulator
www.mt4i.com
(. .otes on the MT4 strateg% tester
(.1 /istoric data) 0unmatched data errors1) modelling 2ualit% etc.
8or general information a&out use of the MetaTrader 4 strateg' tester, please see the MetaKuotes
forum.m6l4.com discussion &oard and articles. 8or e<ampleA
httpA((forum.m6l4.com(14+12
httpA((forum.m6l4.com(#+2%
httpA((articles.m6l4.com()
httpA((articles.m6l4.com(%/
(.2 0Multi*timeframe1 3MT45 indicators
Please note that multi-timeframe indicators can effectivel' see into the future when used in visual-
mode MT4 &ac.testing. The' will potentiall' give 'ou advantageous information which 'ou could not
have had historicall'. 8or e<ample, halfwa' through a &ar the' will tend to indicate what is a&out to
happen &ased on the future price at the end of the &ar.
The technical reasons for this are as followsA
If an @" uses MK4 functions such as i$lose79, i3igh79, i$ustom79 etc in &ac.testing for a
timeframe which is different to the chart timeframe 7e.g. the 31 values when running on a
M1# chart9, then this is safe. The values which the @" sees are &ased on the latest simulated
price, not an' future prices.
Iut if an indicator is added manuall' to a visual-mode &ac.test, then use of i$lose79, i3igh79,
i$ustom79 etc for a higher timeframe will see the &ar-end values rather than the interim
simulated values. In other words, if an indicator is manuall' added to the chart, and collects
prices from a higher timeframe than its chart, then it 4&rea.s out5 of the &ac.testing
environment and can see what happens in the future.
Page 12 of 12