Forex Tester - software to backtest trading strategies
Forex Tester is software that simulates the forex market with unparalleled realism. It allows you to test trading strategies (manual or automatic) on data spanning several years while learning how to trade faster than with trading a demo account.
How is this possible? Forex Tester uses historical forex price data. You can therefore speed up time, pause or go straight to particular interesting "events" in time.
Forex Tester is easy for beginners to use, but it also includes an API for traders who know how to program.
Statistics reveal your performance; you can take notes on each transaction (keep a trading journal) and export your journal to analyse it in Excel or in other programs.
Spreads and swaps can be defined for each currency pair, making the simulation even more realistic as you can simulate any broker you want. The data stream includes historical data from various brokers.
How can simulations benefit me?
It is often said that most traders lose all of their money during the first year.
So, what characterises a successful trader? The best traders all emphasise the importance of backtesting.
Backtesting is the use of a market's historical data to determine if a trading strategy would have been profitable. Although there is no guarantee, a strategy that would have been profitable in the past has a high probability of being successful in the future.
Manual backtesting requires many months of simulation, but with Forex Tester it only takes a few hours because you control the speed of the simulated market. This allows you to test not just one, but several strategies. The automatic backtesting of expert advisors is even faster. Forex Tester can do both.
Testing automated strategies (Expert Advisors)
Forex Tester is much more powerful than MT4's strategy tester:
- Backtest strategies based on multiple currency pairs and timeframes;
- See exactly how your strategy works in real time;
- Test strategies with real data in ticks that include floating spreads. You can therefore also test scalping EAs;
- You can change the strategy's settings while the test is running;
- You can interrupt a test and "rewind" to analyse the market situation;
- Simultaneously test several EAs on multiple currency pairs;
- Optimise the parameters of an EA - Forex Tester can test all possible combinations very quickly.
Forex Tester vs demo accounts
Features | Forex Tester | Demo accounts |
|---|---|---|
| Obtain trading skills without risk | ||
| Test a trading strategy | ||
| Test trading strategies with historical data spanning many years | ||
| Pause a test and continue later | ||
| Correct the errors made in manual tests: go back in time to cancel or undo a closed trade | ||
| Control the speed of tests | ||
| Test different strategies on a single time period with optimised settings |
Backtesting with Forex Tester vs MetaTrader 4
MT4 is one of the best trading platforms out there. The software includes a backtesting feature, but it has major flaws.
Features | Forex Tester | MT4 |
|---|---|---|
| Test automated strategies | ||
| Test strategies on a time frame | ||
| Test a strategy on a currency pair | ||
| Test several time frames at the same time | ||
| Test several currency pairs at the same time | ||
| Test combined strategies (manual trade entry and automatic trade exit) | ||
| Save and pause a strategy to continue later | ||
| Go backwards | ||
| Test using tick data | ||
| It provides detailed statistics during and after the test | ||
| Test several automated strategies at the same time | ||
| Modify the parameters of an EA in real time while it runs | ||
| Faster and more efficient |
Free trial version
You can try the software before you buy it. Click here to download the demo version for free.
The free version has a few limitations compared with the paid version:
- Historical data is limited to one month;
- You can test continuously for 1 hour (you then have to start a new test);
- You cannot record the test results, projects or models;
- The other features are identical to the paid version.
Buy without risk
To remove the restrictions of the free version, you must purchase a licence ($199).
You can get a full refund if you're not completely satisfied! The refund guarantee is valid for 30 days.
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