Is anyone else skeptical as to the reliability of the Strategy Tester. I've only been working with it for about 6 months now, so maybe I'm missing something.
Here is what I do:
1. I download data from Alpari
2. I convert to appropriate time periods
3. I back test until I find successful strategies
4. I move successful strategies to live demo accounts
5. I compare results of live testing to back testing for that same period of time
Step 5 almost always fails. There is almost no similarity between the back testing and live results. I am running at 90% modeling quality and I even shift back 1 period so that I am always using the last completed interval. This should give the most reliable results in my opinion.
I understand that the different brokers (data) would cause some discrepancy, but the difference between live results and back testing is just too big.
I am testing 7 different strategies on live demo accounts and so far the trades are quite a bit different when compared to back testing.
Anyone have any insight? I have all the data from both live testing and back testing if anyone would like to see it.
Here is what I do:
1. I download data from Alpari
2. I convert to appropriate time periods
3. I back test until I find successful strategies
4. I move successful strategies to live demo accounts
5. I compare results of live testing to back testing for that same period of time
Step 5 almost always fails. There is almost no similarity between the back testing and live results. I am running at 90% modeling quality and I even shift back 1 period so that I am always using the last completed interval. This should give the most reliable results in my opinion.
I understand that the different brokers (data) would cause some discrepancy, but the difference between live results and back testing is just too big.
I am testing 7 different strategies on live demo accounts and so far the trades are quite a bit different when compared to back testing.
Anyone have any insight? I have all the data from both live testing and back testing if anyone would like to see it.