Bad religions in historical forex data

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Hi,

I would like to know what and how are the impact of bad religions of historical data set in back-testing an algorithm or a strategy.  

as an example, suppose a historical data set has a sudden movements due to news impact. when we use this data set for back-testing an algorithm, definitely algorithm cannot be properly tested because of these kind of bad religion.

I would like to know your ideas on this, how to overcome this kind of issue when back-testing a strategy developed.

if I create a full set of data, annotation these kind of all bad religions, which can easily skip or thoroughly consider depending on the situation when back-testing, I would like to know the effect I am going to put for this project will valuable or not.

Thanks

 

To overcome this is simple.

Don't backtest.

Or if you insist you could add a filter for abnormal moves, but i don't recommend it.

 
Marco vd Heijden:

To overcome this is simple.

Don't backtest.

Or if you insist you could add a filter for abnormal moves, but i don't recommend it.

I see you developed a product called <>, as per my understanding, it also uses the strategy tester for back-test the EA. My question is, what is your point for not to back-test an EA ?
 

No it's to manually test strategy's so you can practice your idea's and develop your trading skills.

What would your point be to do a back test ?
 
Roledene JKS:

Hi,

I would like to know what and how are the impact of bad religions of historical data set in back-testing an algorithm or a strategy.  

as an example, suppose a historical data set has a sudden movements due to news impact. when we use this data set for back-testing an algorithm, definitely algorithm cannot be properly tested because of these kind of bad religion.

I would like to know your ideas on this, how to overcome this kind of issue when back-testing a strategy developed.

if I create a full set of data, annotation these kind of all bad religions, which can easily skip or thoroughly consider depending on the situation when back-testing, I would like to know the effect I am going to put for this project will valuable or not.

Thanks


No you cant do that because you will fall into look ahead bias trap which lead to a flaw backtest result.
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