How Can I Forward Test Effeciently? | Forex Factory

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How Can I Forward Test Effeciently?

  • #1
  • First Post: Jan 11, 2008 4:05am Jan 11, 2008 4:05am
Hi Guys!

I am looking for a way to forward test a system in a way that looks and feels like the next best thing to the real thing. Let me explain what I mean by that.

Currently I am using the MT4 platform and have found a few drawbacks on trying to forward test.

What I really need is a way to:

  1. Buy, sell, and place orders, set up S/Ls & T/Ps in the past with dummy money and play the scenario forward bar-by-bar, as if having placed a real trade.

  1. Swaps taken into account (never mind that different brokers have varying swaps I just need an idea).

  1. To take out micro, mini and standard lots.

  1. Switch between different time frames without the platform hopping forward in time but staying put and only revealing the last candle at that exact point in time ( thats what happens on MT4 when I use the current data and if I use historical data I can't switch time frames)

  1. To import and run .mq4 files

  1. Make use a whole range of standard tools/indicators like Fibos, Bollinger Bands, Moving Averages, Force Index etc



This is what I need and nothing less will do.


If you know of a way in which I could make it work on MT4 please let me know.

If it isn’t possible to do it on MT4 the way described above then you might know of software that you've used yourself and would recommend.

If there is anything that I haven't taken into account in your opinion please let me know.


Many thanks your help is greatly appreciated.

MP
Be like a post stamp! Stick to it until you get there!
  • #2
  • Jan 11, 2008 4:09am Jan 11, 2008 4:09am
Don't know about forward testing.
But Skunny and Bo and Blue have put together some great info on Vhands.

Check it here:
http://www.forexfactory.com/showthread.php?t=60849

Very usefull tool.
Carpe Divitiae
  • #3
  • Jan 11, 2008 10:00am Jan 11, 2008 10:00am
What you're describing is Back Testing. Forward Testing would be to practice your strategy from today forward.

Quoting Mary Pippins
Buy, sell, and place orders, set up S/Ls & T/Ps in the past with dummy money and play the scenario forward bar-by-bar, as if having placed a real trade.
You can do this by turning off "Auto Scroll" and using F12 to move one candle at a time.

Quoting Mary Pippins;
Swaps taken into account (never mind that different brokers have varying swaps I just need an idea).
You'll have to do this manually. It's not something that's automatically included in an order, as it only applies when holding an open position overnight.

Quoting Mary Pippins;
To take out micro, mini and standard lots.
The lot size will be determined by you when you place your orders.

Quoting Mary Pippins;
Switch between different time frames without the platform hopping forward in time but staying put and only revealing the last candle at that exact point in time ( thats what happens on MT4 when I use the current data and if I use historical data I can't switch time frames)
The best way to do this is to open up the same chart in different time frames. For example, open a GBP/USD chart in H1, H4, D1, etc. Then, when you switch to the other time frame, nothing will change because it's, technically, a different chart.

Quoting Mary Pippins;
To import and run .mq4 files
.mq4 files only run in MetaTrader. So, if you're using MT4, then you can import and run .mq4 files.

Quoting Mary Pippins;
Make use a whole range of standard tools/indicators like Fibos, Bollinger Bands, Moving Averages, Force Index etc
MT4 includes a lot of indicators. You can find any you don't have by searching the forums. There are hundreds of them.
  • #4
  • Jan 13, 2008 4:04pm Jan 13, 2008 4:04pm
Quoting fsiltd
Don't know about forward testing.
But Skunny and Bo and Blue have put together some great info on Vhands.

Check it here:
http://www.forexfactory.com/showthread.php?t=60849

Very usefull tool.

Hey fsiltd,

Thanks for you hint I got the Vhand up and running and its a pretty cool tool. That was the kind of thing I was looking for. The only thing with it is that I cant switch time frames whilst the history data is running through. In my strategy it's important to compare time frames with one another, so this makes Vhands a bit iffy for my use, still many thanks your help is greatly appreciated.
Be like a post stamp! Stick to it until you get there!
  • #5
  • Jan 13, 2008 4:07pm Jan 13, 2008 4:07pm
Quoting Mary Pippins
Hey fsiltd,

Thanks for you hint I got the Vhand up and running and its a pretty cool tool. That was the kind of thing I was looking for. The only thing with it is that I cant switch time frames whilst the history data is running through. In my strategy it's important to compare time frames with one another, so this makes Vhands a bit iffy for my use, still many thanks your help is greatly appreciated.
No worries. Most welcome.
Carpe Divitiae
  • #6
  • Jan 13, 2008 4:51pm Jan 13, 2008 4:51pm
Quoting Mary Pippins
Hey fsiltd,

Thanks for you hint I got the Vhand up and running and its a pretty cool tool. That was the kind of thing I was looking for. The only thing with it is that I cant switch time frames whilst the history data is running through. In my strategy it's important to compare time frames with one another, so this makes Vhands a bit iffy for my use, still many thanks your help is greatly appreciated.
You could still keep several charts open to past data, different timeframes, stop vhands, study the other charts, then make the trade decision.
  • #7
  • Jan 16, 2008 8:46am Jan 16, 2008 8:46am
Quoting In2Blues
What you're describing is Back Testing. Forward Testing would be to practice your strategy from today forward.



You can do this by turning off "Auto Scroll" and using F12 to move one candle at a time.



You'll have to do this manually. It's not something that's automatically included in an order, as it only applies when holding an open position overnight.



The lot size will be determined by you when you place your orders.



The best way to do this is to open up the same chart in different time frames. For example, open a GBP/USD chart in H1, H4, D1, etc. Then, when you switch to the other time frame, nothing will change because it's, technically, a different chart.



.mq4 files only run in MetaTrader. So, if you're using MT4, then you can import and run .mq4 files.



MT4 includes a lot of indicators. You can find any you don't have by searching the forums. There are hundreds of them.

Hi In2Blues,

Thanks for your response, I didnt realise that what I described is actually called backward testing instead of forward testing.
I looked into the things you mentioned but the idea for me was to actually simulate trades on historical data as close as technically possible to real trading or forward testing which would include placing entries, orders S/L, T/P etc. on the terminal and see how it pans out.
It would be possible with the method you suggested but also it would increase the possibilty of human error i.e me miscalculating or overlooking something especially over longer periods.

Also when switching time frames on the MT4 the chart jumps back to the latest bar.
This has 2 disadvantages:
1. That I would have to manually scroll back to e.g. some date in year 2000 on a 1 hour chart everytime I switch TFs
2. Moreover it opens up the possibility of me "peeking ahead" on the price movement and influence my decsion making.

Nonetheless I'd like to thank you for the thoughts you put into answering my questions and please correct me if I am oblivious to solutions on the problems I mentioned above.
Be like a post stamp! Stick to it until you get there!
  • #8
  • Jan 16, 2008 9:01am Jan 16, 2008 9:01am
Quoting blueruby
You could still keep several charts open to past data, different timeframes, stop vhands, study the other charts, then make the trade decision.

Hi blueruby,

Thanks for making this cool tool available, it looks like that it will boil down to your suggestion of opening new windows and switching between the vhands and other ordinary time frames. But this approach has 2 disadvantages that I've described in my response to In2Blues above.

When switching time frames on the MT4 the chart jumps back to the latest bar. This has 2 disadvantages:
1. That I would have to manually scroll back to e.g. some date in year 2000 on a 1 hour chart everytime I switch TFs
2. Moreover it opens up the possibility of me "peeking ahead" on the price movement and influence my decsion making.

If there is anything that I've overlooked please let me know.


Apart from that I, by now, came across a software called Forex Tester (www.forextester.com), it looks exactly like what I am looking for but has one crucial disadvantage for me. You cannot import MT4 indicators since all the indicators on that software are .ddl files as opposed to .mq4 or .ex4
I wanted to test Auslanco's H4 H1 strategy with custom QQE and Gann Hilo indicators but have no way of making them appear on the Forextester.
But may be this software might be still interesting for you or even better, you know a way to convert MT4 indicators into .dll?

Many thanks again
Be like a post stamp! Stick to it until you get there!
  • #9
  • Last Post: Jan 20, 2008 8:15pm Jan 20, 2008 8:15pm
Quoting Mary Pippins
Also when switching time frames on the MT4 the chart jumps back to the latest bar.
This has 2 disadvantages:
1. That I would have to manually scroll back to e.g. some date in year 2000 on a 1 hour chart everytime I switch TFs
2. Moreover it opens up the possibility of me "peeking ahead" on the price movement and influence my decsion making.
I understand what you're saying about "peeking ahead".

However, if you follow these steps, it should solve that problem:

1) Open multiple charts of the same currency pair, each with a different time frame.

2) Make sure that "Auto Scroll" and "Chart Shift" are disabled in MT4.

3) Move the chart as far back as you want to start, and use F12 to move forward one candle at a time (this prevents "peeking ahead").

Each time you move to another timeframe, the previous chart will stay put.

I do it all the time and it works great.

I always backtest manually, so I can't help with the software, but I've heard that vhands is supposed to be good.
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