The MetaTrader Strategy Tester produces a dense report after each run. Here is how to read it without being dazzled by the net profit line.
Header
Check the symbol, period, modelling mode and date range first. A test in “open prices only” mode or over a few months is a rough sketch, not evidence. The history quality figure shows how complete the tick data was.
Profit lines
- Total net profit — final result after costs that were included in the test. Meaningless without the drawdown next to it.
- Gross profit / gross loss — the two halves of net profit. Their ratio is the profit factor.
- Expected payoff — average result per trade. Compare it to the spread: if the expected payoff is only a few pips, small changes in costs can erase it.
Drawdown lines
MetaTrader reports absolute, maximal and relative drawdown, for balance and equity. Equity drawdown includes floating losses of open trades and is the more honest number, particularly for grid systems that leave losers open.
Trade statistics
Look at the number of trades, the share of winners, the largest and average win and loss, and the maximum consecutive losses. A system with 95% winners and an average loss ten times the average win is fragile.
The graph
A balance line that climbs smoothly while the equity line dips far below it is a warning sign: losses are being held rather than closed.