Backtest reliability, unsure

Dear Traders from ForexFactory

im starting a new threat, if anybody knows something common please let me know and i will delete if possible



my question:

i created a very fast scalper that works in 1 Min Timeframe
on my backtest results i get a very good result

as i am a young student i dont have much money to test it in live that s why i would like to inform as much as possible how reliable my results are
since i heard backtests are not very reliable i want to ask you how much experience you have with it ? and how much divergence you have seen between TEST (Backtest), DEMO and LIVE?




i created a scalper that does an average win of nearly 7 pipps-
and i dont have a big testing quality cause i dont bought this programm to get 99% backtest result
because 7 pipps is not to much it could diversify, sure much!



have you ever got such results and it didnt work out on live ? please let me know

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have you ever got such results and it didnt work out on live ?

Yes a lot of times! so i'd say at least run it on demo for a while. If the curve is alike to the backtest results , im sure there will be a lot of interested people to run it on a live account for a test run. (A live cent account is an option too)

People who develop such systems and don't have the right funds, usually start up a Account copy service and get some income through that until they have enough to start up on their own.

Goodluck!

Very kind answer thank you much!
okay i will let it run 1 month on demo
and thank you for all the information i will inform well about



regards

Everything below 99,9% is a waste of time. Standard MT4 backtest quality is crap and cannot be taken as source for any assumptions.

You will have to spend some money for quality tickdata including slippage simulation and real variable spreads. Sorry, but you get what you pay for.

Dont have to be sorry i only asked

Thanks a lot

Unfortunately i have to agree with what he has said because mt4 tick data doesnt make any sense and without getting proper tick data you can never be sure whether or not your strategy will perform well in live markets.This is what happens to many of those traders who try to backtest with mt4 tick data and get unreliable and unrealistic results because of incorrect data and bad ticks.

Bloomberg terminal is by far the best anyone can get in terms of everything they want.

If you don't mind me asking , Would a mt4 backtest be viable if you are trading higher time frame say the 1 hour chart ?

Hello yes it can be viable but you still need quality data for it which you can get from a very trusted source like dukascopy and oanda.

You can see and test dukascopy data from here

Regards

would someone like to participate in testing my ea who maybe has a better backtest programm/data/ slippage and so on ?

I'm happy to test your EA on my custom backtesting setup.

It uses tick data from Dukascopy to give pretty good results (i.e. as close to real life as possible). I'm also in the process of adding Oanda data, so it'll eventually be possible to test on data from two separate providers.