Is back testing pointless?
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I feel as if backtesting is a dying art and plus backtesting to then using the EA live drastically changes results.
Unless is there a software which gives great results, what software do these Quant funds use?
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Its not.
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@gtoat777 A good backtesting needs a good strategy and the best quality tick data possible. Period. The first part is up to you. For the second one I recommend to use Tick Data Suite 2. A bit expensive, but they offer excellent data.
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@gtoat777 Hows it going friend, you sound frustrated .. unfortunately the financial markets are designed to frustrate us and this makes money for these market makers :))
To answer your question, back testing is still very important, coz we make EA's and indicators to help us see and enter trades with little frustration as possible.
That's what you should think about every time you test an ea or use an indicator, to confirm what you saw or suspect. That's what i use back testing for, not to see profits all the time.
My personal take on EA's indicators etc, are to help us with placing trades not really make us profits coz no one really knows what will happen in the next minute or hour as we know, so why leave it to chance??
Rather make peace in your heart and decide this is when you want to enter a trade or, the EA should enter a trade particular rules are met, and decide on how many pips you want to catch and then you are out regardless of how much you could've made if you stayed a bit longer in the trade and also stop saying stuff like "Thank God i got out quickly" to yourself, this will lead to more frustration and stress.
So use your Ea and Indicators to confirm what you see and to act on your behalf since we humans are very cautious creatures and we question everything we do, only success and positive results make us confident, until then have a simple and doable plan and follow it until you see financial success!
All the best
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Haha no my friend I’m not frustrated at all, it’s just the markets are forever changing so doing thorough backtest at times seem like a bit of a waste of time, some strategies that worked in the 1980s do not work in this market, some strategies from even 5 years ago don’t seem to work in this market, trading is like sports it’s forever changing and evolving so you have to just get with the times.
To a certain extent I believe with FX strategies, staying on a concept of sports , it’s like saying will a player today be able to play in all eras, it doesn’t really matter as long as they’re successful in today’s game that’s all that matters.
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The guru himself ahah, thanks for your reply, I can’t seem to find Tick Data Suite 2, I think I’ve found the first one, would you be able to share a link
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@gtoat777 It is the same as for TDS1:
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@l-andorrà Thank you I will purchase in a couple of weeks
