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BackTest Timezone

  • #1
  • First Post: Jul 19, 2007 12:34pm Jul 19, 2007 12:34pm
Just wanted to throw an interesting thing out there for those of you big into backtesting. If you really want to do the due diligence make sure you give the trade a chance to work in Several different timezones. I backtested a trade last month that I am now trading. I backtested it in a spread of timezones because it opens on the open of the new day candle. Different time zones open that candle at different times, and therefore have completely different indicator values. ie. stoch's, cci, macd.

The difference in the results was amazing. between PST, EST, and GMT. GMT is hardly tradable, while EST is giving me good returns since I started trading it live.

Here are screenshots of my backtest. Notice GMT pays less than 50% of the time, while EST pays 68% of the time. Thats a huge difference.


http://img508.imageshack.us/img508/8...mezonesnw9.jpg

This backtest is across 2.5 years worth of trades. I just thought the difference was amazing. From 2800 pips to 8000. Thought I'd share.
The basis of a democratic state is liberty. ~ Aristotle
  • #2
  • Jul 27, 2007 10:28am Jul 27, 2007 10:28am
what mt broker use EST time?
EA Programmer for Hire
  • #3
  • Jul 31, 2007 7:54am Jul 31, 2007 7:54am
Vensik.................I love backtest info like this, many thanks!
  • #4
  • Edited 2:48am Aug 1, 2007 2:44am | Edited 2:48am
nice .. I am gonna keep my eye on this .. very interesting stuff.

Are you saying that your daily candle closes on 00:00 EST?
Any idiot can take profit, real traders know how to take losses!
  • #5
  • Aug 1, 2007 3:32am Aug 1, 2007 3:32am
I have discovered the same results. I have been using a broker (their MT4 is set to eastern time zone) for a while now, and my end-of-day system worked very well. Unfortunately they closed down, and since I have been forced to use a broker who is set to GMT, my end-of-day system does not work.

To compensate for this I use a custom indicator, to calculate a daily candle, based on the timezone I set. Soon I intend to write an indicator to convert the timezone as well.

You have to wonder why any broker would use GMT? Maybe they already know this?

I have spoken with my broker, and they are considering changing to Eastern. They reported that it would be easier for them anyway. I dont think I can report the broker here, but I guess you could contact me.
Forex is a Beast that will happily eat you for breakfast, lunch and dinner.
  • #6
  • Aug 1, 2007 7:32am Aug 1, 2007 7:32am
Why not demo on a broker that uses the ET for close like FXDD, and then trade with established broker? Best of both worlds; that's what I do!

Quoting Quantem
I have discovered the same results. I have been using a broker (their MT4 is set to eastern time zone) for a while now, and my end-of-day system worked very well. Unfortunately they closed down, and since I have been forced to use a broker who is set to GMT, my end-of-day system does not work.

To compensate for this I use a custom indicator, to calculate a daily candle, based on the timezone I set. Soon I intend to write an indicator to convert the timezone as well.

You have to wonder why any broker would use GMT? Maybe they already know this?

I have spoken with my broker, and they are considering changing to Eastern. They reported that it would be easier for them anyway. I dont think I can report the broker here, but I guess you could contact me.
  • #7
  • Aug 1, 2007 9:45pm Aug 1, 2007 9:45pm
Vensik,

Thank you. It is very cool. Can you please provide more detail information about how you tested it? What is your defination of "Trade"? --- do you mean only open and close during (eg.)EST time period each day? Or only open during EST time, for example?

Thanks

Likeke

Quoting Vensik
Just wanted to throw an interesting thing out there for those of you big into backtesting. If you really want to do the due diligence make sure you give the trade a chance to work in Several different timezones. I backtested a trade last month that I am now trading. I backtested it in a spread of timezones because it opens on the open of the new day candle. Different time zones open that candle at different times, and therefore have completely different indicator values. ie. stoch's, cci, macd.

The difference in the results was amazing. between PST, EST, and GMT. GMT is hardly tradable, while EST is giving me good returns since I started trading it live.

Here are screenshots of my backtest. Notice GMT pays less than 50% of the time, while EST pays 68% of the time. Thats a huge difference.


http://img508.imageshack.us/img508/8...mezonesnw9.jpg

This backtest is across 2.5 years worth of trades. I just thought the difference was amazing. From 2800 pips to 8000. Thought I'd share.
  • #8
  • Aug 13, 2007 5:25pm Aug 13, 2007 5:25pm
Hello folks,

I am pretty new to Fozzy and am liking the concept. Have started using Metatrader4 and not sure how to set the time zone to the GMT or EST.

I am in CA (west coast) and the time on the charts is 12 hours ahead of me. What setting should I make in there so that I am at the EST timing?

Please educate a fellow being.

Thanks,
-Apu.
  • #9
  • Aug 13, 2007 5:30pm Aug 13, 2007 5:30pm
Quoting apume
Hello folks,

I am pretty new to Fozzy and am liking the concept. Have started using Metatrader4 and not sure how to set the time zone to the GMT or EST.

I am in CA (west coast) and the time on the charts is 12 hours ahead of me. What setting should I make in there so that I am at the EST timing?

Please educate a fellow being.

Thanks,
-Apu.
apume..............

You cannot change the time on your MT4 charts. Instead, you should select a broker that starts a new trading day and the beginning of a new Daily candle at the time of your choice. Personally I prefer a new Daily candle at 5 PM ET and for that reason I use a demo account with FXDD for signal charts. Other Fozzy traders have selected other start times for their new trading day based on personal preference.

I suggest you take a few minutes and read this thread; it should help:

http://www.forexfactory.com/showthread.php?t=5293
  • #10
  • Aug 13, 2007 6:29pm Aug 13, 2007 6:29pm
Hello BeachBum,

I am having a lack of understanding here, please help. From the post link you provided, the times of the servers are:
IBFX: GMT
CoesFX: GMT +3
MetaQuotes: GMT +2
FXDD: GMT +3
Fibo Group: GMT +2
MoneyTec: GMT +3
Orion: GMT +4
Alpari: GMT +2
Forex LTD: GMT +2
Real Trade: GMT +2

What I want is something that you suggest (end of candle at 5 pm EST). The list says that FXDD timing is GMT+3 - so how does it mean that their candle ends at 5 pm EST? Is it something completely unrelated to the timings above?

Sorry for being so stupid - but I gotta learn somewhere .

Thanks,
-Apu.
Quoting BeachBum
apume..............

You cannot change the time on your MT4 charts. Instead, you should select a broker that starts a new trading day and the beginning of a new Daily candle at the time of your choice. Personally I prefer a new Daily candle at 5 PM ET and for that reason I use a demo account with FXDD for signal charts. Other Fozzy traders have selected other start times for their new trading day based on personal preference.

I suggest you take a few minutes and read this thread; it should help:

http://www.forexfactory.com/showthread.php?t=5293
  • #11
  • Aug 13, 2007 8:53pm Aug 13, 2007 8:53pm
Quoting apume
Hello BeachBum,

What I want is something that you suggest (end of candle at 5 pm EST). The list says that FXDD timing is GMT+3 - so how does it mean that their candle ends at 5 pm EST? Is it something completely unrelated to the timings above?

Sorry for being so stupid - but I gotta learn somewhere .

Thanks,
-Apu.
Stupid is when people ask questions without doing any research, not the case here!

5 PM ET is the same as GMT+3

5 PM ET plus 4 hour time difference plus 3 hours equals 00:00 GMT (The beginning of the new day using GMT).

Hence my FXDD account which is GMT+3 has a new Daily candle at 5 PM ET. (Don't worry about DST, the brokers allow for this and adjust accordingly)

GMT+2 = 6 PM ET

GMT+1 = 7 PM ET

GMT = 8 PM ET

Choose your time and your broker. HTH!
  • #12
  • Aug 13, 2007 9:17pm Aug 13, 2007 9:17pm
Thanks, that helps .

Quoting BeachBum
Stupid is when people ask questions without doing any research, not the case here!

5 PM ET is the same as GMT+3

5 PM ET plus 4 hour time difference plus 3 hours equals 00:00 GMT (The beginning of the new day using GMT).

Hence my FXDD account which is GMT+3 has a new Daily candle at 5 PM ET. (Don't worry about DST, the brokers allow for this and adjust accordingly)

GMT+2 = 6 PM ET

GMT+1 = 7 PM ET

GMT = 8 PM ET

Choose your time and your broker. HTH!
  • #13
  • Aug 23, 2007 4:26pm Aug 23, 2007 4:26pm
Didn't realize this thread had taken off again, it's been an interesting month.

Quoting libros
what mt broker use EST time?
Back when I did this backtest, I was using UGMFX as a data feed. However FXDD I believe is an EST as well.

Quoting bmchunu
nice .. I am gonna keep my eye on this .. very interesting stuff.

Are you saying that your daily candle closes on 00:00 EST?

I'm saying my daily candle closes in different timezones for the backtest of this particular trade. The one that happened to produce the best with this trade was EST, followed by -7 GMT out in california.

Quoting Quantem
I have discovered the same results. I have been using a broker (their MT4 is set to eastern time zone) for a while now, and my end-of-day system worked very well. Unfortunately they closed down, and since I have been forced to use a broker who is set to GMT, my end-of-day system does not work.

To compensate for this I use a custom indicator, to calculate a daily candle, based on the timezone I set. Soon I intend to write an indicator to convert the timezone as well.

You have to wonder why any broker would use GMT? Maybe they already know this?

I have spoken with my broker, and they are considering changing to Eastern. They reported that it would be easier for them anyway. I dont think I can report the broker here, but I guess you could contact me.
Interesting that your broker is considering changing. One of my IB's was with Royal FX Only because they were an EST broker. That was really the only advantage that I could give them to clients or students. They randomly changed their server time to GMT a while back. When I called to complain/figure out why they would do this, they said that Metatrader themselves had contacted them in an effort to consolidate under one time zone. It may have been bogus, but that was their excuse. I terminated the IB because I had more stable metatraders to offer with GMT time, once again, the only advantage to them was the EST for some of my clients.

Quoting Likeke
Vensik,

Thank you. It is very cool. Can you please provide more detail information about how you tested it? What is your defination of "Trade"? --- do you mean only open and close during (eg.)EST time period each day? Or only open during EST time, for example?

Thanks

Likeke
Well, I didn't really start this thread to highlight the trade itself. More to show the difference that the daily candle close can have on a single trade type in candle by candle manual backtesting. The trade opens on the close/open of a daily candle with 3 lots (Or the ability to close 3 different times) There is a set rule for lot 1 to be closed, lot 2 to be closed, and lot 3 closes when you reverse directions and enter south. The entry itself was based on that candle closing though, so having a midnight in EST vs a midnight in GMT is a 4 hour difference, big difference in the numbers.

Quoting apume

I am pretty new to Fozzy and am liking the concept. Have started using Metatrader4 and not sure how to set the time zone to the GMT or EST.
This isn't the Fozzy Method trade by the way.
The basis of a democratic state is liberty. ~ Aristotle
  • #14
  • Sep 9, 2007 6:24pm Sep 9, 2007 6:24pm
Quoting Vensik
Back when I did this backtest, I was using UGMFX as a data feed. However FXDD I believe is an EST as well.
That is incorrect info in FXDD. FXDD's server time is GMT + 2.
  • #15
  • Sep 9, 2007 6:47pm Sep 9, 2007 6:47pm
Quoting WHTenn
That is incorrect info in FXDD. FXDD's server time is GMT + 2.
FXDD is GMT + 3
  • #16
  • Edited 8:37pm Sep 16, 2007 5:03pm | Edited 8:37pm
FXDD is GMT +2. Here is their email response:

George,
You are correct, MT4 server time is GMT +2.

Regards,
____________________________
Michael Morelli
FXDD Support Team
75 Park Place, 4th Floor
New York, NY 10007
Tel: 212.791.3951
Fax: 212.937.3845
www.fxdd.com

Quoting BeachBum
FXDD is GMT + 3

After further investigation and asking a second person at FXDD.com, the above GMT +2 is incorrect. One would assume that FXDD would know what time zone they trade with.

The correct time zone is GMT +3 as stated earlier by BeachBum.
  • #17
  • Sep 16, 2007 6:01pm Sep 16, 2007 6:01pm
Quoting WHTenn
FXDD is GMT +2. Here is their email response:

George,
You are correct, MT4 server time is GMT +2.

Regards,
____________________________
Michael Morelli
FXDD Support Team
75 Park Place, 4th Floor
New York, NY 10007
OK...............then someone who is better at math then me needs to explain why FXDD has a new Daily chart candle at 5 PM ET.
  • #18
  • Sep 16, 2007 6:24pm Sep 16, 2007 6:24pm
Quoting BeachBum
OK...............then someone who is better at math then me needs to explain why FXDD has a new Daily chart candle at 5 PM ET.
FXDD is GMT +3.

As I write this it is 19:22 NY time.
That is 23:22 GMT
I am looking at the FXDD platform.
It is showing 02:22 GMT.
No joke.
  • #19
  • Edited 8:50pm Sep 16, 2007 8:27pm | Edited 8:50pm
Quoting BeachBum
OK...............then someone who is better at math then me needs to explain why FXDD has a new Daily chart candle at 5 PM ET.


Sorry BeachBum, I was going by what the company was telling me. I sent a reply back to Michael Morelli who told me that it was GMT +2 and questioned his email response.

I got another email response from Christopher Defina that stated that FXDD is GMT +3. You are correct and I do apologize, I was going by what FXDD was telling me in their first email. You would assume that FXDD would know their trading GMT.

Christopher Defina
Sales and Support
75 Park Place, 4th Floor
New York, NY 10007
Tel: 212.791.3950
Fax: 212.937.3845
[email protected]
www.fxdd.com

Sorry BeachBum, you were correct all along.
_________________________________________________________________________
Email from same employee that told me incorrect GMT..

Hello,

At the current moment, it is GMT +3. It will be GMT +2 when Daylight Savings
Time ends on November 4, 2007.

Regards,

____________________________


 Michael Morelli
FXDD Support Team
75 Park Place, 4th Floor
New York, NY 10007
Tel: 212.791.3951
Fax: 212.937.3845
[email protected]
www.fxdd.com

(Looks like Michael forgot his apology in his email).
  • #20
  • Sep 17, 2007 6:58am Sep 17, 2007 6:58am
No need to apologize! Thanks for following through on this for us.

I am not inclined to trust "Customer Service" people to answer even minor technical questions like this one. My posts were based on personal experiences using FXDD's MT platform. Hang in there, I'm sure Michael's apology is on the way!

Cheers.....................
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