Forex Tester for Windows 10 – Full description

Forex Tester 3 is a software that simulates trading in the forex market. It is designed for you to learn how to trade profitably and to create, test & refine your strategy for manual and automatic trading. – Test and improve your trading strategy for consistent and growing profits! – Grow confident in your strategy so you can keep a clear head, act immediately on trading opportunities and avoid mistakes when you trade live later on! – Become an experienced and successful trader in less time! How does it work? Forex Tester simulates the Forex market with unequalled realism. You can test strategies and train your trading skills on (simulated) years of data in just a few hours (real time). Our strategy tester works with the recorded price movement of the real Forex market (15 years of historic price data). Like a recording of music, you can jump forward, pause or jump right to the interesting moments. You can go back to any point of time within the recorded price data and if you have saved a testing session (project) before, you can also restore all your open trades, trade history and account balance (of your simulated broker account) at this moment of the simulation. Statistics reveal true performance: You can take notes on every trade (keep a trade journal) and export your trade log for analysis on Excel or other programs. Theres no longer any need to rely on estimations, or even on wishful thinking! Amateurs have to rely on assumptions and believe what others tell them. Professionals, however, make their decisions based on facts. Forex Tester will deliver the hard facts about your strategies. If a strategy is not profitable, you will find that out quickly with Forex Tester (contrary to testing in a demo account). Now you can improve it or invest time in developing another strategy. Likewise, if you have a great strategy, you will want to trade as soon as possible. Forex Tester delivers the results you need to do so with confidence.

What is Backtesting?

Before I define ‘backtesting’, it will be helpful to discuss the history of backtesting first. In 1980, backtesting of a Forex system was a pretty straightforward concept. Traders would make their conscientious trades on charts, making the position either to ‘buy’ or ‘sell’. Then, they would manually write exhaustive notes of their trade results in a log. Most of the trade ideas came from a profound understanding of fundamental analysis, or the awareness of market patterns. In the 1990s, a person was considered an ‘investing innovator’ if they were able to display data on a computer monitor.

The electronic process that allows us to check results online and gain confidence in our strategy today used to take months, even years, in the past. However, technological advancements have simplified the entire process for us.

Since then, the process has continued to advance, but not always for the better. Those who apply diligence and common sense to backtesting trading strategies in Forex are usually in a better position to be rewarded with tremendous gains.

On the other hand, traders who only apply computing power and leave human logic out of the picture are likely to suffer huge losses. When it comes to backtesting FX strategies, no software can replace a human being – especially one equipped with the right tools.

Definition

Forex backtesting is a trading strategy that is based on historical data, where traders use past data to see how a strategy would have performed. The definition of a backtesting application is a set of technical rules applied to a set of historical price data, and the subsequent analysis of the returns that a Forex strategy would have generated over a specific period of time.