# Backtesting Version 5

Backtest Version 5 with the Version 5 EA file and Version 5 presets only.

danger

Do not use Version 4 `.set` files for Version 5 backtests. The input map and trade-management behavior are different.

## Strategy Tester Setup[​](#strategy-tester-setup "Direct link to Strategy Tester Setup")

Use the normal MT4 Strategy Tester workflow:

1. Open MT4 Strategy Tester.
2. Select the Version 5 EA.
3. Select the symbol and timeframe.
4. Load a Version 5 tester preset.
5. Confirm license/backtest licensing behavior.
6. Confirm `Magic`, risk, sessions, filters, and Smart Risk settings.
7. Run a short sanity test before running long optimizations.

The Version 5 package includes tester files under:

```
tester\
```

## Data Rules[​](#data-rules "Direct link to Data Rules")

Historical data quality still matters. The Version 4 historical data principles remain relevant for MT4 backtesting:

[Historical Data For Backtesting](/banana-ea/mt4/docs/v4/backtesting-optimization/historical-data.md)

Use broker-specific data when you are trying to match the broker chart. Generic index, futures, or third-party CFD data can be useful for research, but it will not perfectly reproduce another broker's feed.

## What To Validate In Version 5[​](#what-to-validate-in-version-5 "Direct link to What To Validate In Version 5")

Version 5 backtests should specifically check:

* Smart Risk Monitor settings.
* challenge progress and risk multiplier behavior.
* progressive risk reduction.
* trailing high-water-mark drawdown control.
* weekly drawdown cap.
* session profit lock.
* consecutive loss circuit breaker.
* PC1, PC2, and PC3 behavior.
* exit template behavior after partial close.
* scale-in conditions.
* trailing activation conditions.
* pending-order cancellation.
* day-of-week and session filters.

## Why Results Can Differ From Version 4[​](#why-results-can-differ-from-version-4 "Direct link to Why Results Can Differ From Version 4")

Version 5 can produce different results from Version 4 because the risk, scaling, filter, cancellation, and trade-management lifecycle can be different. A stable Version 4 setup should be treated as its own setup, not as proof that an equivalent Version 5 setup is ready.