Given that Forex Tester limits price data to 1 minute granularity, how can the software accurately generate exact tick prices as seen by the market?
Well, after reading the help file and specifically the sub section relating to tick data, 'Generate tick data', I see that Forex Tester does not accurately draw tick data at all! Instead, the methods described only mimic the OHLC price, generating ticks either point by point, as OHLC price values or randomly! This is a real pity ...
Do you not think it would be better to cater for proper tick data in the first instance?
Don't get me wrong, I'm not saying that the 3 methods don't have a use just that given pure tick data, Forex Tester ought to be able to backtest strategies from each tick in the file and also be able to build complete bars of any time frame from the data. Do you think this is a good idea?
For the most testing purposes it is more than enough. Most traders use 1 hour timeframe at least, only pipsers try to work with every tick to get 1-5 pips in every transaction but my experience tells me that brokers fight with those people, force them to use not market but pending orders. Make delays in order execution on the fast price movement or use requotes. So I really do not see any value to use exact ticks data, 1 minute is enough.
But if you want to test as precisely, you can replace ticks arrays generated by program at "\data\Ticks" folder with your own. Then it will be exactly the same ticks. Still data converter is required.
Hi, this is a bit old so I'm not sure if this is still the case, but I'm not sure I grasp this correctly. Are you saying that when playing the history data back in testing mode, the pip by pip movement I'm seeing is not accurate? That is, when I watch the formation of a one minute bar, what I'm seeing is not really how it formed but rather an approximation created from the OHLC of the bar? If so then that's seriously not good. And whether brokers have a problem with any particular trading style is really irrelevant, bearing in mind that not everyone trades with bucketshops. Also I specifically wanted to view pip movement to watch exactly how price reacted at certain times or certain prices, etc. If it's not accurate then it's useless.