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Backtest and Reality

jmlforex
May 19 2013 at 10:33
17 posts
PipGnostic
TheCyclist
May 19 2013 at 11:48
724 posts
Not MT.

Different CPU's will give different results. If you're online and offline will give a different result and MT makes up data as it goes along if there isn't any.

The back testing is useless.

You need to be on a proper language like JAVA and good data.

Higher time frames might be better, but I have never matched a single days trading to a back test for the same day. Try it, trade for a day or 5 then run a back test on those same 5 days and see if they are even close.

CrazyTraderfx (CrazyTrader)
May 19 2013 at 13:37
1718 posts
It depends what kind of EA you are backtesting. If it's scalping then to do backtest you need to do this way.
https://eareview.net/tick-data

Backtest is more to check out how your EA is running in order to correct codes if it doesn't work properly.

SiamFXNET
May 19 2013 at 17:54
72 posts
CrazyTrader posted:
It depends what kind of EA you are backtesting. If it's scalping then to do backtest you need to do this way.
https://eareview.net/tick-data

Backtest is more to check out how your EA is running in order to correct codes if it doesn't work properly.


There are much better ways than Birt's method.
https://www.tickstory.com/

Results from live and backtest do match if the EA is coded correctly to operate on per tick commands.

SiamFXNET
May 19 2013 at 17:56
72 posts
jmlforex posted:
Do you trust backtest ?


Only a backtest that we do ourselves with our own EA. We can't trust others.

JohnKrema
May 19 2013 at 19:54
1 posts
Nope. Never trust backtesting.

CrazyTraderfx (CrazyTrader)
May 19 2013 at 21:24
1718 posts
JohnKrema posted:
Nope. Never trust backtesting.


I do beleive my backtesting.
Finding the right parameters for a delimited period of time on a particular instrument doesn't mean you are going to win in live.

CrazyTraderfx (CrazyTrader)
May 19 2013 at 21:26
1718 posts
SiamFXNET posted:
CrazyTrader posted:
It depends what kind of EA you are backtesting. If it's scalping then to do backtest you need to do this way.
https://eareview.net/tick-data

Backtest is more to check out how your EA is running in order to correct codes if it doesn't work properly.


There are much better ways than Birt's method.
https://www.tickstory.com/

Results from live and backtest do match if the EA is coded correctly to operate on per tick commands.


I have tested it, it's fast and really easy. Great tool thank you

petays
May 20 2013 at 14:23
86 posts
I tested my EA for years back using only M1 open tick data and then run it on real account for two months and the results were pretty much the same we expected. We had about 5 trades a day, TP somewhere between 10-20 pips. Market orders only.
I used Forex Tester 2 for backtests because MT4 tester is so slow when you have more trades open (as we had). FT2 is about 10-100x faster depending how many open trades you have.
But it really depends on your strategy how to test it to get reliable results.
Sometimes it is favourable to just use bar close/open to do calculations because it filters out some spikes in tick data. And this speeds testing a lot!

Being Bearish or Bullish Makes No Difference
amktrade
May 20 2013 at 19:53
3 posts
I have found backtesting on MT4 to be a useful guide on live performance, but you will get differences on live and backtested results, due to broker slippage, down time and other factors. And yes, backtesting on the bigger time frames gives more accurate results compared with live results.

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