How to Backtest in Forex

Forex backtesting software

The idea of doing a successful backtest is that you gather a HUGE amount of data and can analyse this data without needing to go back and complete another backtest. TrendSpider – Trendspider is very efficient when it comes to backtesting. With the lack of coding knowledge needed and the built in features, it’s extremely quick to get through a whole backtest task. TradingView – TradingView is efficient in some aspects and lacking in others. Opening trades, skipping to certain dates in time etc is all done very well and it looks very pleasant.

Forex backtesting software

The best choice for traders who consider even the tiniest price fluctuations. Indicators serve to predict price fluctuations making tons of thorough calculations. With a good indicator, you get a trustworthy clue when to enter and exit a deal.

Best Technical Indicators List and PDF

This is a vital tool which is so good that everyone can us it according to their own and find it a best thing which is going to consider a best analysis part. Whenever you are planning to do something, it is always better to first test it out risk-free, or at the very least manage your risk-reward ratio. This is true for almost everything in life and Forex trading is no exception. Download our software now and see for yourself what Forex Tester can do for you to succeed in this exciting business!

The most famous and high-quality trading software for Forex is MetaTrader. Most of the top Forex brokers will come equipped with either MetaTrader 4 or MetaTrader 5, in the ideal case, they will offer both. MetaTrader platforms are free of charge whenever the trader registers with the broker and a lot of free indicators will come together with the platform. Most of the tools and indicators will be exclusively owned by these two software types. However, MetaTraders are mainly offered for PCs only and are not every device-compatible at this stage. If you are a US citizen, then signing up with can be your top choice in order to test the trading platform even on the Demo account.

First-Hand Experience

For instance, traders that work with a scalping starting will definitely need to upgrade for realistic backtesting and practice. Not only is backtesting important from a psychology point of view, it can allow you to tweak aspects of your trading. Let’s say that you take a few trades per month on the JPY during London open. What if you’re not profitable in trading purely because these trades, out of session, are losing 90% of the time and completely changing your overall win rate? This may take you 2 months of data, or 15 years depending on the trading strategy you’re trying to test.

Is MT4 backtest reliable?

99% backtest using high-quality tick data and a real variable historical spread is the most accurate test you can do on MetaTrader 4.

After this, you code the strategy into a language that can be read by the platform. In addition, it is also a social platform, where traders can get in touch with others, exchange ideas about trading, and find out what other traders are doing in the market. A special tool for backtesting on TradingView is called the Bar Replay Feature, which lets traders adjust the settings according to their individual interests and needs.

User reviews about Forex Tester

We are talking about some kind of things which are good and according to your taste and these things are good to make sure that how these are giving you profit. Backtesting is a thing which is going to take your performance in another level. Our partner, XM, lets you access to a free demo account to apply your knowledge. Depending on the timeframe selected and the computing power of your device, it can take anywhere from a few minutes to hours for the process to complete.

  • Finally, you optimize the results by adjusting parameters like stop-loss variables and order types.
  • It opens a simplified panel so that you can open orders in one click.
  • Minimally, it must be realistic and offers high-quality trade records.

You shouldn’t hurry there as well, do this for half a year at least. Go back & forward in time (backtesting) or go only ahead (to simulate market conditions as they are). The trader is doing things in the help of this and work so hard for getting some extra money from this. It is a system that give you some extensive part to make sure that how analytical thing is work on this side and make some profit. This represents some kind of stock system which is giving you extra trading part in it.

Ways & Alternatives to Backtest Forex

QuantHouse – As Quanthouse is not really geared towards retail traders, there are no reviews online of the offering. You’re able to speed up candles, run EA’s and even export your trading data at the end, which can then be analysed making it extremely efficient. You can either download it directly from MetaQuotes or through your broker as the large Forex backtesting software majority of brokers will offer a white label MT4 platform to traders. I’d highly recommend Forex Tester if you’re looking to backtest the markets! Start backtesting with the free version and upgrade when you need a larger metric library and longer lookback periods. “I like that members are willing to exchange trade ideas sourced on the platform.”

How far should I backtest for forex?

The time period for backtesting depends on the average holding period of your position. If you are trading a strategy with a holding period of more than a month, it is better to use a long time period, preferably 15 years. If you are creating an intraday strategy, then ten years is a reasonable amount of time.

How do I backtest my forex strategy?

  1. Navigate to the indicators and trading systems window.
  2. Select the trading system you want to backtest.
  3. Open the trading system and input your test parameters.
  4. Run your test and analyse the results.
  5. Optimise by testing different input parameters (eg stop-loss values and limit orders)

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