MT5 real backtest

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Hello   am wring this as an enquiry  and as a  trader its all about the mt5  backtester   i need someone with vast knowledge and experience to  provide advice about the mt5   tester as of now it seems like mt5 backtester is not a reality  or perhaps our method of backtesting is bad,,,,, could someone  advice on what is the most precice way of backtesting mt5 with real   history  do we have any method  that   backtest will  be accurate   almost identical to a real  market situations  because i highly dout   that tester on  mt5  gives accurate history   results,, if you for example  if you test  same ea logic on mt4 and mt5 say on eurusd one month same timeframe      you should get same results    
 
28846173: Hello   am wring this as an enquiry  and as a  trader its all about the mt5  backtester   i need someone with vast knowledge and experience to  provide advice about the mt5   tester as of now it seems like mt5 backtester is not a reality  or perhaps our method of backtesting is bad,,,,, could someone  advice on what is the most precice way of backtesting mt5 with real   history  do we have any method  that   backtest will  be accurate   almost identical to a real  market situations  because i highly dout   that tester on  mt5  gives accurate history   results,, if you for example  if you test  same ea logic on mt4 and mt5 say on eurusd one month same timeframe      you should get same results    

No you will not get the same results between a MT4 and a MT5 back-test, because the two platform's Strategy Tester work differently. not to mention that they will also use different data-feeds for the testing.

It is also impossible to distil our knowledge and experience gained over many years, into a few simple posts. You too will have to study and build up your own knowledge and experience over time.

 

and 

Each point is based on a real-time point

 
#1 demo accounts do not use the same server as the live account
#2 live account execution time can vary
#3 historical data does not model other traders/competitors killing your position or taking you out
 
28846173:
what is the most precice way of backtesting mt5 with real   history  do we have any method  that   backtest will  be accurate   almost identical to a real  market situations  because i highly dout   that tester on  mt5  gives accurate history   results   

You are correct in your assumption that it doesn't give accurate, or even realistic results. Aside from what Fernando Carreiro said, you also have to deal with the problem that many non-prime brokers don't have access to pre-2017 historical data, or the fact that different brokers have access to different liquidity providers (this is a matter of business relationships), and most importantly: the complete absence of Out-Of-Sample datasets from the Metatrader backtesting procedure.


cowmodee:
historical data does not model other traders/competitors killing your position or taking you out

Stop hunting is already part of the historical data, since the increase in volume and its subsequent influence on the price action of the asset is reflected in the chart/tick data. There is also no way of knowing whether the stop losses that were triggered below/above support/resistance were caused by a natural shift in supply and demand of the asset, or were caused by highly capitalized financial actors, such as hedge funds and investment banks. The only ones who have the ability to know that for certain are the perpetrators themselves and especially the latter mentioned actors (investment banks) since they have an in-depth knowledge of the order books and can visually see where traders have placed their orders and stop losses. And since the clients of the investment banks are prime brokers who in turn provide services to retail brokers, the investment bank has significant informational leverage over everyone else.

This is common practice in the investment banking industry. The one I previously worked for often based their trades on how many stops were placed at a certain level, how far the current market price was away from that and whether or not the foreign exchange department had enough capital to engage in stop hunting. If the market price was close enough, and both risk and compliance officers gave the nod, the trading department would then place massive buy/sell orders to affect the market price, trigger the stops of the retail traders and profit that way. There is no way for the retail trader to know if his stop that was triggered was due to stop hunting, or a natural shift of supply/demand.

 
Fernando Carreiro #:

No you will not get the same results between a MT4 and a MT5 back-test, because the two platform's Strategy Tester work differently. not to mention that they will also use different data-feeds for the testing.

It is also impossible to distil our knowledge and experience gained over many years, into a few simple posts. You too will have to study and build up your own knowledge and experience over time.

very nice bro i get it 

 
Dao Liang Ding #:

and 

Each point is based on a real-time point

thank you bro

 
Suren Khosravi #:

You are correct in your assumption that it doesn't give accurate, or even realistic results. Aside from what Fernando Carreiro said, you also have to deal with the problem that many non-prime brokers don't have access to pre-2017 historical data, or the fact that different brokers have access to different liquidity providers (this is a matter of business relationships), and most importantly: the complete absence of Out-Of-Sample datasets from the Metatrader backtesting procedure.


Stop hunting is already part of the historical data, since the increase in volume and its subsequent influence on the price action of the asset is reflected in the chart/tick data. There is also no way of knowing whether the stop losses that were triggered below/above support/resistance were caused by a natural shift in supply and demand of the asset, or were caused by highly capitalized financial actors, such as hedge funds and investment banks. The only ones who have the ability to know that for certain are the perpetrators themselves and especially the latter mentioned actors (investment banks) since they have an in-depth knowledge of the order books and can visually see where traders have placed their orders and stop losses. And since the clients of the investment banks are prime brokers who in turn provide services to retail brokers, the investment bank has significant informational leverage over everyone else.

This is common practice in the investment banking industry. The one I previously worked for often based their trades on how many stops were placed at a certain level, how far the current market price was away from that and whether or not the foreign exchange department had enough capital to engage in stop hunting. If the market price was close enough, and both risk and compliance officers gave the nod, the trading department would then place massive buy/sell orders to affect the market price, trigger the stops of the retail traders and profit that way. There is no way for the retail trader to know if his stop that was triggered was due to stop hunting, or a natural shift of supply/demand.

thanks bro

 
Fernando Carreiro #:

No you will not get the same results between a MT4 and a MT5 back-test, because the two platform's Strategy Tester work differently. not to mention that they will also use different data-feeds for the testing.

It is also impossible to distil our knowledge and experience gained over many years, into a few simple posts. You too will have to study and build up your own knowledge and experience over time.

if for example you   trade on forward  test for 1 week  live   you get result A.  When you backtest for the same period  same parameters  i beleive you should get same results but in this case   i see very diffrent things in comparison

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