How different are backtest results against demo against live? - page 2
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Yes i know what you mean several things are possible, they find something profitable in tester and go live hoping to become rich quickly , and blow out their account in a few weeks, or, some of it makes it to market, and blows out other peoples accounts, or it becomes available as a signal,
I found that when you find something, you discover something else, that will be working against you, that has to be overcome.
Thank you, I also use the Strategy Tester only for testing logic and debugging purpose.
But a lot of people believe they can use for other purpose, which can be more or less true depending of the strategy. As JD4 said a real account has to deal with spread variation, slippage/requote, but also eventually loss of connection, low liquidity, etc...I would like, a day, to create a topic not only to tell these things but to demonstrate concretely the actual impact of all these parameters on the trading results.
i will be glad if you did open the discussion.
Can I ask why in private ? It will be good if we had a serious topic about this, as it's a recurring question people ask. There are some general advice as the one of JD4 which are correct, but a detailed explanation would be very welcome.
Thank you all for your comments,
Of course in backtesting liquidity and order execution is granted.
What I would like to know is if results are similar,
Or if your broker plays a role in allowing you to either win or lose even if you made a good decision on trend.
Thank you all for your comments,
Of course in backtesting liquidity and order execution is granted.
What I would like to know is if results are similar,
Or if your broker plays a role in allowing you to either win or lose even if you made a good decision on trend.
The broker question is a big enough topic to get it's own thread, TBH. And it also depends on the type of broker as well. You might want to take a look at the thread at https://www.mql5.com/en/forum/156114 about the broker choices out there.
The results are all over the place in regards to being "similar", and I think if they happen to actually be similar at some point, it is more random chance than anything else. If it comes down to a choice over backtesting or no backtesting, it is a good idea to backtest, for most strategies anyway. But that will give you potentially a dangerous false sense of what will happen when you "go live." As long as you are aware that while the backtest may look like it will get you every single cent out of every possible trade, the live trading is very likely to be very different. It is a clear example of showing the saying "hindsight is 20-20."
The broker question is a big enough topic to get it's own thread, TBH. And it also depends on the type of broker as well. You might want to take a look at the thread at https://www.mql5.com/en/forum/156114 about the broker choices out there.
The results are all over the place in regards to being "similar", and I think if they happen to actually be similar at some point, it is more random chance than anything else. If it comes down to a choice over backtesting or no backtesting, it is a good idea to backtest, for most strategies anyway. But that will give you potentially a dangerous false sense of what will happen when you "go live." As long as you are aware that while the backtest may look like it will get you every single cent out of every possible trade, the live trading is very likely to be very different. It is a clear example of showing the saying "hindsight is 20-20."
I just did do you want me to explain it again?
I bet you didn't even read it.
The generation of ticks is carried out based on support points
Intermediate ticks between support points are generated according to the following rules:And it is not storing the entire tick history, only the support points, and it just generates ticks in between, it will never be the same or a copy of live market.
I just did do you want me to explain it again?
I bet you didn't even read it.
The generation of ticks is carried out based on support points
Intermediate ticks between support points are generated according to the following rules:Because of data usage and execution speed.
Look at the file sizes of historic data can you imagine they had to incorporate volume as well...
And because it is a tester, to test things nothing more.
If it doesn't suit your needs i guess the only option is to find something that does replicate every tick, good luck with that.