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brokers using manipulated price feed

Discussion in 'General Forex Talk' started by saj1011, Mar 16, 2012.

  1. saj1011

    saj1011 Recruit

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    Hello FPA dudes!

    my problem is with brokers using the manipulated price feed for the strategy tester/back tester, what are peoples thoughts on what should be an illegal practice ? as most brokers use the price feed from a main provider (better not mention name) and the results when trying to optimze an EA vs more accurate data imported from a reliable source like dukascopy are 10-1, so for the unsuspecting newbie, who thinks he has found the holy grail in back testing, then loses everything with same broker on live system, is this not a form of fraud ?

    are there any legal cases against the brokers on this disgusting practice yet ?

    thanks
     
    #1 saj1011, Mar 16, 2012
    Last edited: Mar 16, 2012
  2. Romeo

    Romeo Sergeant

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    It is an interesting theory, but past results can not guarantee future performance.
    I don't think anyone would even think of making a legal case based on a theory, which tests past results.

    Many EAs are optimized during the back testing, but you can see difference in the performance during forward testing with different brokers using the same settings. You always need to forward test an EA on a demo account of the broker you intend to use the system for live trading.
     
  3. Pharaoh

    Pharaoh Colonel

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    Another thing to watch out for is how much backtest data you can get from your broker and what the quality is. If you've only got a month's worth of 1 minute candles, you won't be able to get a very good picture of how the EA might perform over time.
     

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