Trade smarter. Forex & gold.How to Read an MT5 Strategy Tester Report: Every Number Explained, With a Real Example
Every EA seller shows a Strategy Tester report, and most buyers only look at one number: the profit. That's the number that tells you least. This guide walks through a real MetaTrader 5 report, line by line, using our own test of a gold basket EA, so you can see what each figure means, how it's worked out, and which five numbers to check first on any report.
Key takeaways
- Check the settings first: real ticks, a long test period and the inputs you'll actually use.
- Profit factor is gross profit ÷ gross loss. Above 1.0 makes money; 1.0 to 1.2 is a thin edge.
- Size the EA from the maximal equity drawdown, not the balance drawdown.
- Compare the average win with the average loss: a high win rate can hide big losses.
- A report with few trades, a short period or a perfectly straight line deserves extra suspicion.
- The five numbers to read first: history quality, net profit, profit factor, maximal equity drawdown and total trades.
Where the report comes from
In MetaTrader 5, open the Strategy Tester (View, Strategy Tester, or Ctrl+R), pick the EA, symbol, timeframe and dates, and press Start. When the test ends, the Backtest tab shows the results, and you can right-click and choose Report, HTML to save the full report. That HTML file is what most sellers share.
Our example is a real report: a gold basket EA, Conservative settings, gold (XAUUSD) on the 15-minute chart, September 1 to October 17, 2026, $10,000 starting deposit. It is a short test window, chosen here because every number in it is easy to follow. Short windows are not enough to judge an EA; we come back to that below.
Step 1: check the settings and data quality
| Line | Our example | What to check |
|---|---|---|
| Expert / Symbol / Period | Gold basket EA, XAUUSD, M15 | The same EA version, symbol and timeframe you plan to run. |
| Inputs | Risk Mode = Conservative (all inputs listed) | The exact settings. A report on 'optimised' inputs you won't use tells you little. |
| Modelling | Every tick based on real ticks | The most realistic mode. 'Open prices only' or 'Math calculations' can be far off for basket and scalping EAs. |
| History Quality | 100% real ticks | Lower numbers mean gaps in the price data. Be cautious below about 90%. |
| Bars / Ticks | 2,986 / 15,735,900 | More ticks means finer detail. Sixteen million ticks in seven weeks of gold is normal for real tick data. |
| Initial Deposit | 10,000.00 USD | Results scale with lot size, so compare like with like. |
Step 2: the profit numbers
| Line | Our example | What it means |
|---|---|---|
| Total Net Profit | 349.67 | Gross profit minus gross loss over the test, in account currency. Costs in the test (spread, any commission and swaps) are included. |
| Gross Profit / Gross Loss | 1,737.00 / −1,387.33 | All winning trades added up, and all losing trades added up. |
| Profit Factor | 1.25 | Gross profit ÷ gross loss. 1,737.00 ÷ 1,387.33 = 1.25. Above 1.0 makes money. |
| Expected Payoff | 6.48 | Average result per trade. 349.67 ÷ 54 trades = $6.48. |
| Recovery Factor | 0.67 | Net profit ÷ maximal equity drawdown. 349.67 ÷ 519.44 = 0.67. Higher is better; below 1 means the worst dip was bigger than the profit. |
| Sharpe Ratio | 2.56 | Return compared with how bumpy it was. Use it to compare tests of the same EA, not with fund Sharpe ratios. |
| Z-Score | −0.06 (4.78%) | Do wins and losses come in streaks? Near 0 means no pattern. Values beyond about ±2 suggest a pattern. |
| AHPR / GHPR | 1.0007 / 1.0006 | Average return per trade as a multiplier (arithmetic and compounded). 1.0007 is +0.07% a trade. |
| LR Correlation | 0.70 | How close the balance line is to a straight line (1.00 is perfectly straight). |
| LR Standard Error | 133.51 | How far, in $, the balance wanders from that straight line on average. |
| Margin Level | 11,046.22% | The lowest margin level during the test. Very high here because the lots were small. |
Work out the main ratios yourself
You only need four numbers from the report: gross profit, gross loss, total trades and maximal equity drawdown.
If your own maths doesn't match the report, something has been edited. That's a quick check on any screenshot a seller sends you.
Step 3: the three drawdowns (the most important part)
| Line | Our example | What it means |
|---|---|---|
| Balance Drawdown Absolute | 226.11 | How far the balance fell below the starting deposit. |
| Equity Drawdown Absolute | 238.16 | Same, but measured on equity (open trades included). |
| Balance Drawdown Maximal | 414.00 (3.99%) | The biggest fall from a balance high to the next low, in $. |
| Equity Drawdown Maximal | 519.44 (4.99%) | The biggest fall from an equity high to the next low. This is the one to size from. |
| Balance / Equity Drawdown Relative | 3.99% / 4.99% | The biggest fall measured in %, which can be a different dip from the biggest $ fall. |
Balance only changes when a trade closes. Equity includes the profit or loss of trades that are still open. An EA that holds losing trades (like a basket EA) can show a smooth balance while equity dips well below it. That's why the Equity Drawdown Maximal line is the one to size your account from.
What this drawdown means at your size
The test used a $10,000 account. You want to run the same preset on $10,000 and allow for live trading being worse than the test.
A seven-week test will almost never contain the worst period an EA will see. Always look for the longest test the seller has.
Step 4: the trade statistics
| Line | Our example | What it means |
|---|---|---|
| Total Trades / Total Deals | 54 / 108 | A trade is a position opened and closed; each one is two deals (in and out). |
| Profit Trades (% of total) | 39 (72.22%) | The win rate. |
| Short / Long Trades (won %) | 30 (73.33%) / 24 (70.83%) | Results by direction. A big gap can mean the test period favoured one side. |
| Largest profit / loss trade | 63.46 / −101.42 | The best and worst single trades. |
| Average profit / loss trade | 44.54 / −92.49 | The size of a typical win and loss. Here the average loss is about twice the average win. |
| Maximum consecutive wins / losses | 13 (538.87) / 2 (−200.39) | Longest winning and losing streaks, with their $ total. |
| Average position holding time | 9:36:30 | Hours:minutes:seconds. The longest trade was open over 63 hours, so overnight swaps matter. |
The most useful pair here is average profit trade against average loss trade. In our example, wins average $44.54 and losses average $92.49. A 72% win rate is needed just to make that work. You can check this with the break-even formula:
Break-even win rate from the report
Average win $44.54, average loss $92.49.
That edge is real but thin. A few extra losing trades in a row, or a wider spread, can erase it. This is typical of basket EAs; see grid and basket EAs explained.
Step 5: read the graph
The graph tells you in five seconds what the numbers take five minutes to say. Look for:
- A steady climb with normal dips: what you want. Our example has two clear dips, around trade 10 and trade 37, and recovers from both.
- A perfectly straight line: often curve-fitting, a martingale that hasn't blown yet, or low-quality data. Real trading is bumpy.
- A few giant jumps: the profit comes from a handful of trades. Remove them and the EA may lose.
- Cliffs: sudden drops that undo weeks of gains. Count them and measure the worst one.
If the report has an equity line too, compare the two. Deep equity dips under a smooth balance mean the EA is holding losing trades open.
Check any report with the calculator
Type in the numbers from any Strategy Tester report (or a seller's screenshot) to check the ratios and see the break-even win rate.
For learning only. Uses the numbers you type in; it cannot check whether a report is genuine.
Red flags in a tester report
One red flag isn't proof of a bad EA. Several together are a strong reason to walk away, or at least to run the test yourself with real ticks over a longer period. A backtest is also only half the story: see how to check an EA's live track record.
Common mistakes
- Reading the net profit first. Read the modelling quality and the drawdowns first. Profit means nothing without them.
- Sizing from balance drawdown. Equity drawdown includes open trades and is the true worst point.
- Trusting a short test. Seven weeks, like our example, is a snapshot. Look for 12 months or more.
- Ignoring the average loss. A high win rate with big average losses is a thin, fragile edge.
- Comparing reports with different deposits or lot sizes. Compare percentages, or re-run both at the same size.
- Believing a screenshot. Ask for the full HTML report, or run the test yourself.
Printable checklist
- Modelling is 'Every tick based on real ticks', and history quality is 90% or higher.
- The test covers 12 months or more, including trends and ranges.
- The inputs in the report are the ones I'll use.
- I've checked net profit against gross profit minus gross loss.
- Profit factor is above 1.0, from 100 or more trades.
- I know the maximal equity drawdown and I've doubled it for live trading.
- I've compared the average win with the average loss.
- The graph shows a steady climb, not a straight line, jumps or cliffs.
- I've seen a live or forward test, not only a backtest.
Frequently asked questions
What is a good profit factor?
Above 1.0 makes money before any costs the test didn't include. 1.0 to 1.2 is a thin edge, 1.2 to 1.6 is reasonable for many EAs, and very high values on few trades are often luck or curve-fitting.
Which drawdown should I look at?
Equity Drawdown Maximal. It includes open trades, so it shows the true worst dip. Balance drawdown can look much smaller for EAs that hold losing trades.
What does 'Every tick based on real ticks' mean?
The tester replays the broker's real recorded price ticks. It is the most realistic mode. Other modes create artificial ticks and can be badly wrong for EAs that use tight stops or many trades.
What is the difference between a trade and a deal?
A deal is one transaction in or out of the market. A normal trade is two deals: one to open and one to close. That's why our example shows 54 trades and 108 deals.
Why does my backtest differ from the seller's?
Different broker data, spreads, commissions, time zones, deposit, leverage or inputs. Ask for the seller's settings and test with your own broker's data.
Does a good backtest mean the EA will make money?
No. A backtest shows how the rules would have done on past prices. Live trading adds slippage, spread changes and new market conditions. Use it to rule EAs out, then forward-test on demo or cent.
Sources and further reading
- MetaTrader 5 Help: testing report
- MetaTrader 5 Help: tick generation modes
- MQL5 article: the mathematics of trading (Z-score, AHPR, GHPR)
This guide is general education, not financial advice. Broker terms differ; always check your own broker's contract specifications.