I have downloaded Forex quotes from 2 different sources and they are significantly different. Using the different quotes gives me significantly different results from the backtests I am running. I downloaded hourly quotes for EUR/USD and GBP/USD for the last 6 months. I downloaded them from my broker's system (InteractiveBrokers) and from this website that I think I found in a thread here in this forum:
http://freeserv.dukascopy.com/exp/
The quotes for EUR/USD average a difference of 4 pips based on closing price and the quotes for GBP/USD average a difference of a whopping 27 pips. WTF? (Pardon my abbreviation) Why is this happening and what does it mean for my backtesting results? With one set of quotes my system tests great and with the other it barely covers the spread. A little more information: On the good test results the EUR/USD trades have great results but the GBP/USD trades are about breakeven.
Can anyone help me understand why the quotes from these two systems are so different and what it means to my backtesting. I'm beginning to think that backtesting is a complete waste of time.
Steve
http://freeserv.dukascopy.com/exp/
The quotes for EUR/USD average a difference of 4 pips based on closing price and the quotes for GBP/USD average a difference of a whopping 27 pips. WTF? (Pardon my abbreviation) Why is this happening and what does it mean for my backtesting results? With one set of quotes my system tests great and with the other it barely covers the spread. A little more information: On the good test results the EUR/USD trades have great results but the GBP/USD trades are about breakeven.
Can anyone help me understand why the quotes from these two systems are so different and what it means to my backtesting. I'm beginning to think that backtesting is a complete waste of time.
Steve