Take time to read this if you would like a true response.
One of the hardest things that new traders need to grasp about the charts They're seeing is that: the sole information each candle retains in its database is:The candle Open price. The candle High price. The candle Low price. The candle Close price. Date and time opens.
That's it people. Now think of the things which are vital to a viewing the likely results of trading which is not held in every candle's database:the spread. Think about this for a couple seconds, people. By default, CrapT4's Crapergy Tester utilizes the current spread. Ouch. If you are 'paper testing' by manually moving back on the charts, you probably won't even bother to add any type of spread calculation. Backtesting at crapergy tester ignores the spread at the time the trade would have been taken since it has no record of it. Consider this:If the trade was taken at the time a major news event premiered and the spread jumped by a factor of 10, this will not appear in your backtested trade outcome. Spreads expand at the weekend, sometimes by a factor of 20 or more. Imagine what that does to EA craptesting results. EA's craptesting their results utilize the current spread. This changes all of the time. Results that are unique will be given by A run at different times. Swap costs. I am not sure that Crapergy Tester factors this in at all when craptesting an EA. For sure, it might take a really dedied paper trader to factor them, even though he/she knows what they were. Just imagine the difference that this makes into the headline profit/loss.
Have a fast consider the impliions of a candle only holding the OHLC in its database, on looking back to find out what indiors are showing you. They are working with each and every candle's closing price. Ok, so they may be working with their receptive price, or any combination of HL, but the significant thing to remember is that; what an indior reveals you onto a chart is a predetermined point in time, that's the candle close moment.
Require an indi that we are all comfortable with - Stochastic. The damn thing may have piled up and down like an elevator on drugs throughout the course of a candle and also performed merry Hell with your trading. This will not appear on your chart because Stoch can simply work the candle close price. Imagine what this does to an EA which depends on Stoch to trigger trade opening and closure.
So, should you run your own Crapergy Tester in visual every tick manner, where do all those ticks come out of? Suppose you are craptesting an EA on the H1. You will notice the Using M1, Using M5 etc messages. Crapergy Tester is carrying the OHLC of every candle it has in its own database and constructing a grid of ticks based on the management these candles required. It's guesswork.
Fine/ish if you are testing a long term egy that merely makes trading decisions at the close of every candle. Bit of a sod if you are craptesting an M5 scalping system. Absolute sod if your long term trading includes a tracking stop.
And then we reach the problem of missing candles. CrapT4 ships using incomplete candle OHLC information, let alone missing tick-by-tick data. Noobs don't tend to understand this.
So guys, this is the reason why back testing is informally prohibited at SHF and why trying to talk it will get you to trouble an any of my threads, and many that I only donate to.
I use it to test which EA code is working. I would never even bother to have nightmares about using it to test an EA's potential profitability - .