Had you been expecting a flashy sales page, I’m sorry to disappoint you. The Tick Data Suite is geared towards people who are not impressed by huge colored and possibly flashing text, so all that you read below are facts that you need to know prior to purchasing your copy.
Backtesting Forex strategies is one among the most efficient ways of gauging their profitability potential. I would go where saying it’s The simplest way unless you’re owning very extensive forward testing results. However, with Metatrader 4 – typically the most popular Forex platform nowadays – backtesting is inherently flawed. Metatrader 4 does not store the actual ticks coming from the broker’s server; the best data at its disposal is data from the M1 timeframe – there are just the open, high, low, close and number of ticks for each minute. So, if there are just these for values, you could be wondering how does it produce the ticks that happened within each minute and the answer is easy: it generates fake ticks through interpolation based on the tick count for each minute. If you didn’t understand what’s the problem yet, I’ll point it out for you: the ticks generated this way are not the real ticks, they are essentially fake ticks! Not only that, but Metatrader 4 is able to only backtest your robot using the fixed spread, whereas all good brokers nowadays use variable spread! It simply uses the current spread of your broker so, for example, if you’re testing an Asian scalper robot during the day, the results will be completely misleading.
Now, if you have a strategy that are responsible for hundreds of pips for each trade and only closes at a stop loss or take profit, the belief that the ticks in your backtest are not the actual ticks does not really matter that much. However, in case you have a scalping strategy that takes profit at 10-20 pips or if you have a strategy that follows the market closely with a trailing stop, backtesting with ticks that actually happened along with the real spread will make a whole lot of difference.
That’s where the Tick Data Suite steps in – using it permits you to use tick data and variable spread in your Metatrader 4 backtesting to obtain an unprecedented accuracy and 99% modeling quality. Since tick data is available for free from multiple brokers, you may also test your expert advisors to see how they would perform with different data sources. Utilizing the Tick Data Suite you can certainly perform a much better appraisal of the strategy you’re evaluating and you may gain the confidence needed to test it live. To really make it even more realistic, the Tick Data Suite goes where offering an option that means that you can simulate slippage in backtesting.
Should you’re wondering how dramatic can the dissimilarity be, have a look at the backtests in my Fast Forex Millions article – the difference between package with history center data and what you’ll receive with tick data is obvious: while the EA performed very nice with history center data, it didn’t do nearly as well when backtested with tick data. For example, you can examine pretty much any of my articles that includes backtests and judge the contrast between tick data and history center data.
You’re invited to look it over yourself – a free 7 day trial is available with the full functionality of the product. Simple to do… Read more…