How to backtest using tick data – the Tick Data Suite guide

This guide assumes that you already downloaded your tick data and processed it into an FXT file and several HST files, all of which were copied in the proper locations. If you haven’t completed the steps above, please visit the How to download free tick data and the How to prepare your tick data for Metatrader 4 guides.

First of all, you have to use the Tick Data Suite installer (available on the tick data downloads page). After the install process is finished, it will automatically run the Configuration tool; you should use this opportunity to install the Tick Data Suite in the Metatrader 4 folders that you want to use it with by using the Select Path button, navigating to the path of your choice and finally pressing the Copy TDS button which will activate the Tick Data Suite with the selected terminal and will prompt you about the placement of an icon on the desktop for easier access.

Once the Tick Data Suite was installed, all you have to do is start it Metatrader 4 via the desktop icon or simply double click tds.exe in the Metatrader 4 folder. That’s all there is to it, really. It will start your Metatrader 4 terminal and all the features will be enabled: there will no longer be a 2 GB limitation, FXT files will not get overwritten, variable spread FXT files will automatically get detected and tick data backtests and optimizations will work (assuming you are using tick data FXT files).

Multiple Metatrader 4 installations

If at a later time you wish to use the Tick Data Suite with a different Metatrader 4 terminal on the same computer, simply execute the Configuration program (located in Tick Data Suite in your Start Menu Programs folder) and repeat the process outlined above: select the path of the Metatrader 4 terminal that you want to use it with and click Copy TDS. Once you’re done with that, in order to start the selected Metatrader 4 terminal with tick data operation enabled you can either use the desktop shortcut (if you chose to create one) or you can navigate to its folder and double click tds.exe.

3rd party software

What is a bit more tricky is using the Tick Data Suite with 3rd party products which assume they have to open terminal.exe. If you run into such a product, you have to rename the original terminal.exe to one of the following:

• terminal.bak.exe
• mt4.exe
• terminal_.exe

then you have to rename tds.exe to terminal.exe. Since command line parameters are seamlessly passed, any 3rd party product should work without problems. The Walk Forward Analyzer author was gracious enough to add a simple checkbox that allows using the Tick Data Suite even without having to rename.

Potential issues with 3rd party software

When using 3rd party tools that automate backtesting and optimization, some problems may come up with EAs that require a connection to the broker even when they are running in a backtest, for example Wallstreet Forex Robot or FAP Turbo. This is caused by the fact that the backtest/optimization are starting too fast since the data is already there. You will know you’ve run into this problem if your EA works fine with the 3rd party tool of your choice with history center data, but refuses to trade when you’re using tick data; it’s typical for EAs that authenticate the account number with their server. There is a workaround for this issue that involves increasing the backtest start delay via the Configuration program – just set it to something like 3 and you should be fine.