frequently_asked_questions
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frequently_asked_questions [2017/07/20 09:13] tickstory |
frequently_asked_questions [2017/07/20 11:00] tickstory [What are the limitations back-testing with tick data?] |
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| Remember that tick-data back-testing is just a tool to help you understand your trading strategy more comprehensively. It does not simulate the real-life situations you will encounter when you begin to trade live. | Remember that tick-data back-testing is just a tool to help you understand your trading strategy more comprehensively. It does not simulate the real-life situations you will encounter when you begin to trade live. | ||
| - | Here are some factors to consider when trying to evaluate your EA's performance in a live market: | + | Here are some factors to consider when trying to evaluate your EA's performance for trading in a live market: |
| * Is your strategy reliant on spread? If so, test with varying spread values to make sure the back-test results aren't adversely impacted by small changes to the spread. | * Is your strategy reliant on spread? If so, test with varying spread values to make sure the back-test results aren't adversely impacted by small changes to the spread. | ||
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| * Slippage - The MT4 Strategy Tester does not factor in slippage into its simulation. Forward-testing your EA will give you a better idea of how this affects your results. | * Slippage - The MT4 Strategy Tester does not factor in slippage into its simulation. Forward-testing your EA will give you a better idea of how this affects your results. | ||
| * What is your ping to the broker's server? Remember that back-testing assumes a ping of 0 milliseconds where this is not reasonable in reality. If you have a HFT trading strategy, your should code assume some delay when placing your trades in the back-tester. When selecting a Broker's server, choose one that is geographically closest to you or has the lowest ping. | * What is your ping to the broker's server? Remember that back-testing assumes a ping of 0 milliseconds where this is not reasonable in reality. If you have a HFT trading strategy, your should code assume some delay when placing your trades in the back-tester. When selecting a Broker's server, choose one that is geographically closest to you or has the lowest ping. | ||
| - | * How frequently does your EA trade? Longer term strategies (for example, those that implement a buy and hold over a week+) are less affected by variables such as slippage and lag. This means you are much more likely to get a more accurate simulation than for a strategy that day trades or trades very often. | + | * How frequently does your EA trade? The back-test results of longer term strategies (for example, those that implement a buy and hold over a week+) are less affected by variables such as slippage and lag. This means you are much more likely to get a more accurate simulation than for a strategy that day trades or trades very often. |
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frequently_asked_questions.txt ยท Last modified: 2023/09/14 22:51 by tickstory
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