How does MT5 get it's prices?
And it is the links/posts I collected -
Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2017.02.15 06:02
You can read this article (TESTING TRADING STRATEGIES ON REAL TICKS).
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Just an example -
MT4 and very old builds of MT5: I optimized the EAs from this thread just to find good settings for the pair, I was backtesting them, and I traded on demo for some time just to be sure that EAs are profitable.
With new builds of MT5: I will optimize the EAs from this thread to find the settings, and I will backtesting them with 'every tick based on real ticks' - and it will be same as trading by those EA on real account for many months or years!
Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2017.02.17 20:53
If you are backtesting EA on MT5 using 'every tick based on real ticks' so it will be almost same with trading on MT5 platform with some particular broker (because it is based on actual historical data).
Example, read this thread: Why is it better MT5 than MT4?? Does it have fewer limitations ??? - this is the quote from the first post of the thread:
- In MT5 you can backtesting robots with the closest possible conditions to the real market natively (real tick data, real variable spreads, lag, slippage, etc). In MT4 you can't natively. You only can if you pay for a third-party software. If so, you also have to download history data from a few sources (there are many few, almost everyone uses the same source), transform it to MT4 format and open the platform through this third-party software in order to patch MT4 behavior. You take many hours to complete this process, and you have to repeat it every time you want to incorporate new data.
We have all seen hundreds of robots that obtained spectacular results in backtesting, but when operating in real account the results were very bad. This is mainly because they were made with conditions that had nothing to do with real market conditions.
For more information about it - read this summary.
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As i know - some coders/traders are converting their MT4 EAs to MT5 just to backtest them and/or to find the settings with optimization to get the backtesting results that are closest to reality.
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I have a quick question about MT5. How does it get the prices for us to conduct Backtesting?
Is it directly from the broker? Do we have the option to select different sources.
One of the advantages of Ninja Trader is that you need to purchase your data which makes the data highly valuable since it is not linked ONLY and directly just to your broker.
If this isn't an option in MT5, having it there would provide a very unique advantage.
Furthermore, MT4 is not Multi-Threaded. Is MT5 Multi Threaded?