Daylight Savings Adjusted Forex Backtesting Data
For Forex Tester 2 & 3
Forex Tester has helped more traders become consistently profitable than any other training software I know of.
But there a few “quirks” that you have to put up with when you use Forex Tester. One of the biggest is in the historical data that they provide.
Even if you subscribe to their paid data service, the data is not adjusted for Daylight Savings Time (DST).
Here's why that matters…
How to Maximize Your Trading System Profits
Let's say that you have a trading system that is consistently profitable, but you want to find out if there are ways to optimize it. One of the first things I recommend looking for is time-of-day patterns.
Is there a time of day when trades are taken, that tends to be most profitable?
Here is an example of actual results from a round of backtesting that I did with Snapdragon Historical Data. Note the hours that are marked with red arrows.
They are only one hour apart, but they have very different win/loss ratios.
Since I used DST adjusted data, it is very clear that trades should be opened after midnight because the win/loss ratio is much more favorable.
If I had used data that was not daylight savings adjusted, these two timeframes would have been blended together.
So this potentially profitable optimization would have been masked, if I used the standard Forex Tester data.
Snapdragon Historical Data gives you the most accurate backtesting results possible.
…and what if you don't have a profitable trading system yet?
Well, why not start with the best data right now? This way, you can have rock-solid confidence in your backtesting results from day one.
Your Backtesting Results Could be “Lying” to You
Having correct time-of-day information in backtesting could determine your success or failure.
To illustrate how, let's take a look at a theoretical trading system that has the most winners when trades are opened during the start of the New York session. The percentage of winning trades by entry time looks like this.
Let's say that you know this because you have a good friend who is a successful trader and these are her verified trading stats over the last 5 years.
This is fantastic because you have a “head start.” You know exactly how to test the system and when to take trades.
So you only enter trades setup during the New York open. But when you backtest the system in Forex Tester, you don't get anywhere near the same performance.
In fact, your results are pretty terrible.
This might lead you to think that the system doesn't really work and your friend must be doing something different. In reality, your entries are one hour off for part of the year, which could be screwing up your results.
So you might brush aside this very profitable system, when in reality, the problem is not with you or the system…it's with the data!
You need to have accurate data to get profitable insights.
Laser Accurate Data From a Trusted Industry Veteran
Adam Hartley is the Founder of Snapdragon Systems Ltd. and has created trading software for some of the biggest fund managers and institutions in the world. Past clients have included Barclays Capital, the Tudor Group (yes, Paul Tudor Jones), Headstart Fund and the European Bank for Reconstruction and Development.
The bottom line is that he knows what traders need because he is a trader himself and has been building institutional-grade trading software since 1996.
Data for Adam's Historical Data Service comes from his carefully selected, reliable and trustworthy Forex quote provider. Since you are getting data from just one data source, it is much more accurate than when it comes from data providers who average the prices from multiple data feeds.
Experience and quality is the difference between Snapdragon and most of the other data providers out there.
Uploading Snapdragon Historical Data is a Breeze
After you have downloaded the historical data files from inside the members area, simply open Data Center inside Forex Tester. Select the currency pair that you want to update, click on the “Import from a file” button and upload the file.
It's as easy as that!
Get Started with Clean Historical Data Today
$149 For the First Month + $29 Per Month For Updates (Cancel Any Time)
Frequently Asked Questions
Who would benefit the most from this data?
This data is for Forex traders who are serious about optimizing their trading strategies. Traders who trade on the four hour and daily timeframes will usually benefit the most from this data.
Do you provide refunds?
We do not provide refunds. If we provided refunds, it would be too easy to just sign up, download the data, then get a refund.
Can I cancel at any time?
Yes, you are free to cancel your subscription at any time. If you need updated data in the future, simply start up your subscription again. If you cancel, your subscription will still be valid until the end of your current billing cycle.
Does this data work for Forex Tester 2 and 3?
Yes, it will work with both programs.
How far does the data go back?
The data goes as far back as 2006.
What is the smallest timeframe of data available?
This service provides 1-minute data.
What markets are covered?
The currencies are all pair combinations for the eight major FX markets, so all combinations of EUR, USD, JPY, GBP, CHF, CAD, AUD and NZD, making 28 markets in all. In addition there are some CFD markets covering the some stock indices (Dax, S&P500, Nasdaq 100) and commodities (Corn, Natural Gas, Soybeans and Wheat).
How is the data time-stamped?
This is an issue that concerns many people when backtesting Forex data, especially for the longer time-frames such as four hour and daily where the time that the bar closes becomes an issue. The basic timestamp is for UK trading but whilst the data timestamp can be shifted at the time that it is loaded into the Forex Tester platform there is the important issue of the two week discrepancy between daylight savings in the US and Europe. This is called the US/UK divergence.
As people tend to want two different kinds of solutions to this issue, we supply two sets of data. For those of you who are trading H4 and daily time-frames, you'll probably want the Constant New York Close Time. Simply import the data into Forex Tester, shift it forward by +2 hours and you'll get the H4 closes and end of day closes all synchronized to the New York close.
1. Constant London Opening Time
With this version, the raw data is adjusted forward by one hour during British Summer Time. This means that the London Opening is always at 8 a.m. UK time. However during the two week divergence the New York close will not happen at 10 pm.
2. Constant New York Close Time
With this version the raw data is adjusted forward by one hour during US daylight savings time. This means that the New York open is always at 10 pm UK time. However, during the two week divergence, the London Open will not happen at 8 am.
Stay Ahead of the Competition
One final thought before I leave you to your backtesting…
Forex trading is an ultra-competitive game and you are trading against some of the smartest and most cunning people in the world. You need every advantage you can get, to extract consistent profits from this market.
Being aware of how time-of-day affects your trading systems is one of the simple optimizations that can have a huge impact on your profitability.
The great part is that it is an easy thing to test, once you have the right data.
Get Started with Accurate Historical Data Today
$149 For the First Month + $29 Per Month For Updates (Cancel Any Time)