1. What is Historical Data?
Historical data refers to the recorded price fluctuations of financial markets from the past. In FX trading, it details how currency pair prices have changed over time. By utilizing historical data, traders can analyze past market conditions and conduct “backtests” to evaluate the effectiveness of their trading strategies. Backtesting is a method for verifying how effective a specific trading strategy has been based on past price data, and it’s particularly important for MetaTrader 4 (MT4) users.
The higher the quality of historical data, the closer backtest results will be to real-world trading conditions, allowing for an accurate assessment of strategy effectiveness. However, if the data contains gaps or anomalies, there is a risk that test results will be distorted and strategy performance won’t be accurately reflected; therefore, using reliable data is crucial.
Types of Historical Data
There are primarily two types of historical data used in FX:
- Tick Data: This data records price changes every time the market fluctuates and is considered to be the most accurate. Using tick data allows for a detailed reproduction of price movements, enabling high-precision backtesting.
- Timeframe Data (Minute Charts, Hourly Charts, etc.): This data records prices at fixed intervals, such as 1-minute charts, 5-minute charts, 1-hour charts, and daily charts. While not as granular as tick data, it provides sufficient information for general analysis and backtesting.
2. How to Obtain Historical Data in MT4 for Backtesting
MT4 has a built-in feature called “History Center” that allows you to download basic historical data for each currency pair. This guide will show you how to backtest in MT4 using this data and explore alternative sources for more accurate results. The following explains the steps for downloading data from the History Center within MT4 and important considerations when using it.
Steps for Obtaining Data from the MT4 History Center
- Launch MT4 and select “Tools” > “History Center” from the menu
The History Center allows you to view and download past data for currency pairs and timeframes (minute charts, hourly charts, etc.). - Select Currency Pair and Timeframe
For example, choose the currency pair and timeframe you want to use for backtesting, such as USD/JPY 1-minute chart or 1-hour chart. - Click the Download Button
The data for the selected currency pair and timeframe will be imported into MT4. The data is saved locally and can be used for subsequent backtests.
Drawbacks of Built-in MT4 Data
Data obtained from the MT4 History Center may have gaps in some data due to low trading volume during certain times or on weekends, which can affect its accuracy. There are also cases where price fluctuations during specific periods aren’t accurately reflected; therefore, it is recommended to obtain reliable data through other methods if you want to conduct precise backtesting.
3. Obtaining Data from External Sources: Finding the Best Historical Data for Forex Backtesting
To perform high-precision backtests, consider obtaining data from external sources in addition to the historical data built into MT4. The following details common external data sources and how to use them.
OANDA Japan Historical Data
OANDA provides data globally, but certain services like OANDA Japan are region-specific. OANDA Japan offers a high-precision tick data download service for MT5 users with trading volumes exceeding $5 million per month. This includes access to tick data for popular currency pairs such as USD/JPY, EUR/JPY, EUR/USD, GBP/JPY, JP225, US30, US100, US500, and XAU/USD. Downloaded data can be imported into MT5 for displaying past tick charts and backtesting Expert Advisors (EAs) and indicators.
OANDAのMT5用のティックデータのダウンロード方法、MT5へのインストール方法をご紹介しています。OANDAでは一定…
Using MT5 and its Benefits
While MT4 is mainstream in Japan, the use of MT5 is limited. However, a major benefit of MT5 is that it allows you to obtain tick data more easily. In particular, the ability to perform high-precision backtesting using tick data is a reason to choose MT5.
Dukascopy Historical Data
Dukascopy is a provider of high-precision historical data offered by a Swiss online bank. Currently, Dukascopy’s data can be directly imported into MT4, making it significantly easier to use compared to before. By linking with the MT4 History Center and Tick Data Suite, you can directly import tick data and minute chart data for detailed backtesting.
- Download Historical Data on the Dukascopy Website
Select the currency pair and timeframe you want to use and obtain the data for the specified period. - Directly Import into MT4
The obtained data can be directly imported into MT4, allowing you to easily use it for backtesting. There is no need for data conversion, making it efficient to utilize Dukascopy’s high-precision data.
Click here to obtain Dukascopy Historical Data
FXDD Historical Data
FXDD was a foreign exchange broker that provided historical data, but it has ceased operations as of September 2025. While this data can be used for backtesting in MT4, caution is advised when using foreign exchange brokers domestically.
There are no particular problems with individuals using the data at their own risk; however, soliciting activity within Japan through pip backs (IB – Introducing Brokers) is illegal. Therefore, FXDD’s historical data should be used as a reference only, and beginners aren’t necessarily advised to use foreign exchange brokers.
Furthermore, the data may have varying accuracy, including price distortions and gaps; therefore, it is recommended to confirm the reliability of the data and adjust any anomalies if necessary.
4. Data Reliability & Precautions
Even when obtaining historical data from external sources, it’s important to verify its reliability before backtesting. Pay attention to the following points and properly check the data:
Data Gaps and Anomalies
Historical data may have “gaps” where prices aren’t recorded during specific trading hours or in times of low liquidity. These distortions or gaps in the data can negatively impact test results. Consider supplementing the data if necessary or consider methods to remove anomalies. If anomalies are confirmed, manual correction or using a data completion tool is effective.
How to Verify Data Accuracy
A visual check of imported data is an effective way to confirm its reliability. For example, display a chart in MT4 and check if prices have fluctuated sharply during specific periods. Also, using indicators such as moving averages or Bollinger Bands can make it easier to confirm price fluctuation patterns, allowing you to easily identify anomalies and gaps.
5. Tools for High-Precision Backtesting
Once you’ve obtained historical data, utilizing “Tick Data Suite” is effective for performing high-precision backtests.
Utilizing Tick Data Suite
Tick Data Suite is a tool that allows you to import tick data from multiple sources, including Dukascopy, into MT4 and perform highly accurate backtesting. By using Tick Data Suite, it’s possible to conduct accurate tests based on tick data, significantly improving strategy evaluation accuracy.
- Install Tick Data Suite
Tick Data Suite is a tool that can be installed as an add-on in MT4, allowing you to easily import tick data. - Import Data from Dukascopy and Other Sources
Use the Tick Data Suite interface to import data downloaded from Dukascopy, etc., and conduct detailed backtests. - Conduct Backtesting
More accurate backtesting is possible in MT4, making it easier to evaluate the effectiveness of your trading strategy.
This article provides a detailed explanation of Tick Data Suite, a backtesting tool. Tick Data Suite is a unique tool th[…]
6. Summary
Utilizing historical data in MT4 is an essential element for evaluating trading strategies. However, built-in History Center and externally obtained data may contain gaps or anomalies; therefore, it’s recommended to verify the accuracy of the data and utilize reliable tools. In particular, using Tick Data Suite allows you to conduct precise backtesting based on highly reliable data from multiple sources.
For beginners, it’s recommended to start with data provided by domestic FX brokers or MT4’s built-in data and learn basic data handling methods and backtesting procedures. For example, OANDA Japan provides reliable data, allowing you to smoothly begin backtesting.
Reference Sites
外為ファイネスト株式会社が提供するメタトレーダー４（MT4）には、テクニカル分析やFX取引の際に使える便利な機能が豊富に…
Ready to take your backtesting to the next level? Try Tick Data Suite for accurate MT4 backtesting today!
