When backtesting an Expert Advisor (EA) on a MetaTrader 5 (MT5) account, it's important to account for commissions and other trading costs to better represent how the EA would perform in a real trading environment. Here's how you can ensure that commissions are included in your backtesting process:
1. Select the Right Symbol:
Make sure you're using the correct trading symbol in your backtesting. Different symbols (e.g., EUR/USD, GBP/JPY) can have varying levels of spread and commission. Choose the symbol that matches the one you intend to trade with.
2. Adjust Spread:
MT5 allows you to set a custom spread for backtesting. Since commissions can sometimes be a part of the spread, you can manually adjust the spread to include the typical spread and commission you expect to encounter in real trading.
3. Custom Commission Setting:
MT5 provides an option to set custom trading commissions for backtesting. Here's how you can do it:
- Open the "Strategy Tester" by pressing Ctrl + R or navigating to "View" > "Strategy Tester" in the top menu.
- Select the EA you want to test and set your desired parameters.
- In the "Settings" tab, look for the "Use custom max spread" and "Use custom commission" options.
- Enable "Use custom commission" and enter the commission amount you want to apply for each trade.
- Make sure to research the commission structure of your broker to input the commission value accurately.