How to Test a Forex Bot on a Demo Account

Before you start

• MT4 or MT5 installed — see the MT5 or MT4 install tutorial.
• The EA installed and configured — see Configure EA Settings.
• A computer or VPS that can keep MetaTrader running during the test.

What you'll learn

• Open a demo account that resembles your planned live account.
• Run the EA with the same settings you'd use live.
• Judge the result against the backtest and the EA's documentation.

Steps

1. 1

   Step 1: Open a demo account with your broker

   Use File → Open an Account, or open a demo in your broker's client area. Choose the same account type, currency, leverage and a balance close to what you'd actually trade.

   Mark as done: Open a demo account with your broker
2. 2

   Step 2: Log in and install the EA

   Log in to the demo account, then install and attach the EA as in the MT5 or MT4 tutorial.

   Mark as done: Log in and install the EA
3. 3

   Step 3: Use your real settings

   Load the same .set file you plan to use live. Testing with a larger lot size or a different symbol than you'll trade makes the result meaningless.

   Mark as done: Use your real settings
4. 4

   Step 4: Keep MetaTrader running

   The EA only works while the terminal is open and connected. Disable sleep on the computer, or run the test on a VPS, and check the connection status daily.

   Mark as done: Keep MetaTrader running
5. 5

   Step 5: Keep a simple log

   Once a day or week, note:

   • Balance, equity and the deepest drawdown so far.
   • Number of trades and any errors in the Experts or Journal tabs.
   • Anything unusual — trades during news, wide spreads, missed sessions.

   Mark as done: Keep a simple log
6. 6

   Step 6: Run it long enough

   Give the test several weeks and enough trades to mean something; an EA that trades rarely needs longer. A handful of trades proves very little either way.

   Mark as done: Run it long enough
7. 7

   Step 7: Compare with the backtest and documentation

   Are trade frequency, average trade and drawdown in line with the backtest for a similar period? Large differences usually come from spreads, slippage or execution — and are what you'd see live.

   Mark as done: Compare with the backtest and documentation

Troubleshooting

My demo account expired

Some brokers expire inactive demos. Open a new one and keep the terminal logged in regularly.

Demo results look much better than expected

Demo execution can be more favourable than live. If you go live, start with the smallest position size.

Gaps in the results

The terminal was probably closed or disconnected. Check the Journal for disconnects and consider a VPS.