How to read an MT5 Strategy Tester report

By Benjamin Lee · Published 2026-10-11 · 1 min read

A Strategy Tester report is full of numbers, and it is easy to read only the net profit. This guide explains the figures that matter and what each one tells you about an EA's risk.

Modelling quality and test settings

Check how the test was run before trusting any number. Real ticks based on broker data give the most realistic result. A low modelling quality or a very short period means the report says little.

Profit factor and expected payoff

Profit factor is gross profit divided by gross loss. A value above 1 means the system made more than it lost. Expected payoff is the average result per trade. Both are sensitive to costs, so run the test with realistic spread and commission.

Drawdown and recovery factor

Maximal equity drawdown shows the deepest fall from a peak while trades were open. Recovery factor divides net profit by that drawdown, which shows how much return the strategy produced per unit of pain.

Number of trades and consecutive losses

A good-looking result from a handful of trades is not reliable. Look at the total trades and the longest losing streak, and ask whether you could sit through that streak on a live account.

Sharpe ratio and the balance curve

The Sharpe ratio relates return to volatility. The balance and equity chart matters just as much: look for steady behaviour across the whole period and not one sharp rise that carries the result.

Frequently asked questions

What is a good profit factor?

Higher is better, but a value that is extremely high on a short or optimised test can be misleading. Check it across a long period.

Why does my report show different results each run?

Different tick modelling, spread, time range or inputs. Keep these identical when comparing runs.

Does a good report guarantee live results?

No. It describes the past under test assumptions. Forward test on demo before going live.

Trading foreign exchange, gold and CFDs carries a high level of risk and may not be suitable for all investors. Past performance, backtests and live results do not guarantee future returns. This guide is general education, not financial advice.

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