Backtesting on MT4 for Binance

Automater supports entries on Binance with or without take profit/stop loss, which is implemented using stop/limit orders on Binance. Trailing stop, breakeven and other similar features are not currently supported. Please also note that adding new trades on MT4 is reflected on Binance futures as adding to the current position with an average price. However, you will notice that we use an optional lot ratio (Setting 6) to adjust the lot size on Binance from MT4 lot size. If you are using a lot ratio other than 1, then you need to consider this difference while back testing, otherwise your back testing on MT4 will not be reflective of what you could achieve on Binance.

Recommend back testing procedure on MT4:

  1. Register a demo account at your broker on the same leverage that you get on Binance futures. If you are using spot market, then open the DEMO account with no leverage (1:1).
  1. Set a testing balance which is equal to your Binance balance available for trading divided by your intended Binance lot ratio (Setting 6). Example: You have USDT 500 on Binance and you intend to use a lot ratio of 0.1 under Setting 26. Then divide 500 by 0.1, which equals to 5,000. Thus, the testing balance has to be 5,000. So that your back testing results would be reflective of what you could expect on Binance when you connect to Binance with 0.1 Binance lot ratio. (However, please bear in mind that past performance of any system is not necessarily reflective of future results).
  1. Now, do the back testing on the MT4 crypto pair for at least 2-3 years on every tick model. Please note that actual prices on Binance can be somewhat different from MT4 (Spot price differences would be less but futures price differences could be considerable if you use short time frames like M1 & M5 or use too small take profit or stop loss). Consider the back testing results along with the drawdown; if you are not satisfied with the results, make necessary changes under the EA settings and do further testing. Automater has a lot of features that you can use to increase the accuracy of your primary signal indicator such as filtering indicator, choppy market filter, MA filter, news filter and so on.
  1. Connect to your Binance account only after you are fully satisfied with the backtesting results as to the optimal lot size, return and potential drawdown.

Operational Differences on Binance from MT4

Closing trades on MT4

Closing an opened spot trade on MT4 is equivalent to an opposite trade on Binance. For instance if you close a BTCUSD trade on MT4, the equivalent action on Binance would be a sell trade on BTCUSDT with the same volume.

Stop loss and take profit on Binance

Take profit and stop loss on MT4 will also be equivalent to opposite trades on spot Binance. For instance, if you buy BTCUSD 01 lot on MT4 at $50,000 spot rate and place stop loss at 40,000 and take profit at 60,000, the EA will open a corresponding BTCUSDT buy trade at Binance at the spot rate that existed at that time. If the price reached $60,000, MT4 would close the trade while on Binance a sell trade will be triggered with the same volume as the buy trade. Similarly, if the price dipped to $40,000, MT4 will execute the stop loss and close the trade while on Binance a BTCUSDT sell trade will be triggered with the same volume as the buy trade.

Adding more positions to the same pair on Futures

When you add additional positions on the same pair, Binance will only add to the current position with an average price where as you will get different trades on MT4.

NB: Functions like breakeven, trailing stop and other advanced functions are not yet supported on Automater.

Backtesting on MT4 for Binance