How to get the best data possible? - page 2
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When backtesting EAs, it's important to ensure the historical data used is accurate, as brokers' data feeds can vary in quality. To improve reliability, many traders use third-party data providers or cross-check the data with external tools to avoid discrepancies that could affect the test results.
How do you evaluate data quality? Let's imagine I downloaded (or purchased) data from a third-party service. How do I know it's better than what the broker provides?
or cross-check the data with external tools
Do you mean buying a third-party tool that works in an unknown way to evaluate the quality of data purchased from another service?
This sounds like nonsense to me, considering that the broker should be supplying tick data directly to the terminal for free.
When backtesting EAs, it's important to ensure the historical data used is accurate, as brokers' data feeds can vary in quality. To improve reliability, many traders use third-party data providers or cross-check the data with external tools to avoid discrepancies that could affect the test results.
These 3rd party tools are just for "playing games". They can simulate a result that is very unrealistic and extremely different to trading with your broker. the ONLY way to test realistic result from s.t is to test with real data from your specific broker. This is via method in mt5 strategy tester called "Every Tick based on Real Data". Testing with any other data is just foolish; unless you are just trying to prove that your code works how you planned it to, then, the other methods will be fine.
In past i used these 3rd party tools, but only because i proved by trading live for a year and compared it with my simulated data that I downloaded from another welknown broker and then modified that data with another 3rd party tool and then compared that with my broker and found that it was over 95% same. Otherwise, there were several times when i did strategy tester with same data and compared it with other brokers, i would lose millions in the tester results.
So only use these 3rd party tools if you are very sure that your simulated data is VERY SIMILAR to your real brokers data!
Recently been backtesting different EA's and started to face a problem, how to know if I'm testing with the right data? For the moment I've only tested with every tick based in real data, but been on curious on where does this data comes from...