Backtest with Dukascopy and implement in broker's server?

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sean8899
Posts: 1
Joined: Tue Apr 11, 2023 2:06 am

Backtest with Dukascopy and implement in broker's server?

Post by sean8899 »

Hi

I am trading with eightcap broker, however when i backtest it shows their data history have low quality

So I use tickstory's 1 year data to backtest and implement those parameter to Eightcap broker's platform

1) Do you guys think this the best way to have accurate data?
2) When i test in my setting get from dukascopy in broker , the backtest are completely different! what shall i do ?
3) I am now stuck at whether to backtest in broker's server for the trading environment or trust dukascopy data history and implement to broker's server

tickstory
Posts: 4883
Joined: Sun Jan 06, 2013 12:27 am

Re: Backtest with Dukascopy and implement in broker's server?

Post by tickstory »

Hi Sean8899,

In response to your questions:

1) Please refer to our FAQ which hopefully should answer your question about the advantages and limitations of using tick data.

2) This is largely expected. If your strategy is sensitive to small pricing movements, the change from 1-minute data to tick data can be huge. The process of back-testing with tick data will help you understand whether your strategy will behave similarly when presented with live data. For example, if you have a strategy that works successfully with tick data under different spreads and slippage rates, then you know it should be more tolerant to these sorts of changes that will occur in live trading (regardless of which broker data you are using).

3) As previously mentioned, using tick data is a more accurate replication of a real-life trading environment. The goal is to replicate a live environment as best as possible. This gives you a better chance of understanding how your strategy will perform when you go live. Remember, the goal is not to replicate what will definitely happen in the future since this is not possible. Changes are constantly occurring in your broker's data (eg. changes in liquidity, server response times, etc) which means past historical data will not be replicated identically in the future. The goal is to ensure your EA is stable under various conditions so you have a level of confidence that your strategy will perform similarly in the future. A well-tested strategy is imperative otherwise your strategy is no better than a gamble.

Hope this helps.

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