In my opinion, you should always use the most precise method you can, before relying on a backtest result, especially with 1M strategy.
So if you are building a 1H strategy, there will not be much difference between 1m data or tick data since the fluctuations inside that minute aren’t really relevant for your strategy (though I always confirm on tick data, even for daily time frames).
But for a 1M strategy, I highly recommend using tick, since during that one minute, price could have had many changes, ups and downs, which are not being recorded in the 1m data, which presents only open & close price for that minute. for 1M strategies, those fluctuations are important.
Did you check out the robustness test on SQ X, “test with higher precision”? So every time a strategy passes your generally defined filters, it’ll be confirmed on that higher precision with attached filters which you can set for that test, this is a brilliant method not to waste time and pc resources on high precision testing of failed strategies..
M1 strategies are by my opinion nonsense – too much noise. i take M5 as a minimum, rather M15…using 1M precision
You want to be a profitable algotrader? We started using StrateQuant software in early 2016. For now we have a very big knowhow for building EAs for every possible types of markets. We share this knowhow, apps, tools and also all final strategies with real traders. If you want to join us, fill in the FORM. 1500+ final SQX strategies for members running on demo accounts to verify the edge DEMO ACCS. We provide also strategies for indices - DAX, DOW JONES, NASDAQ, SP, UK, because we have realtick data from our brokers.
You must be logged in to reply to this topic.