What's the difference between Every tick and 1 minute OHLC modelling in strategy tester?

 

What's the difference between Every tick and 1 minute OHLC modelling in strategy tester? Why is it that all strategies that look profitable using 1 minute OHLC modelling went badly if I were to change it to every tick modelling? All of the strategies are in higher time frame, such as 15 min, 1 hr etc.

Where can I read more info on this matter?

Thank you!

 

The 1 minute OHLC modelling quality uses only the open, high, low and close of any given bar in the timeframe you will use to perform the backtest trade calculations.

The every tick modelling quality uses every tick between all these levels that the price has passed from, so its more precise in order to calculate better the profit/loss results of the trades.

For more solid and trustworthy results, always use the 'Every tick' or even better the 'Every tick based on real ticks' modelling quality.

You can read more about this here: https://www.mql5.com/en/articles/239
 

Nothing to add to what @Eleni Anna Branou already well explained.

I can only write a note about the fact "Why all strategies look profitable in 1 minute OHLC and not every tick". This means that EAs you are referring to are affected by each single tick, for one or more of followign reasons:

  • Ask/Bid prices used in some functions (like trailing stop)
  • Indicator checked on shift 0 (current candle not yet completed)

By logic, you can easily understand that if you want to build a more solid system you should build something that is not affected by tick and to check your indicators always on shift 1 or greater.

Doing that, you can totally trust 1 minute OHLC mode and you will save precious time when backtesting/optimizing and you will also be sure that your system is more solid among different brokers that have (of course) different ticks.