Forex Tester – Forex Back testing software

Forex Tester is one of the most popular forex back testing and simulation software available for traders. A standalone application that can be installed onto your computer, the Forex Tester system is know to provide traders with insights into fine tuning their trading capabilities. The Forex tester system can also be used as a demo trading platform with the vast history of trading data which amounts to over 10 years of market history, that is available when you purchase the Forex tester software.

The forex back testing software includes various indicators such as Moving averages, MACD’s, Pivot Points, RSI and many more. Using the Forex Tester software, traders can test their srategies against 18 differeny currencies which includes a mix of both majors and exotics as well.

How is Forex Tester Useful to a trader

The Forex tester system could perhaps one of the best trading tools investment a trader could make. This is a perfect trading tool that is beneficial for both intermediate traders who want to test and fine tune their trading skills and is equally useful for beginners in forex, who prefer to trade in a simulated environment that provides much more accurate trading environment.

To begin with, let’s take the case of an intermediate trader who wants to test their trading strategies. The biggest advantage of using the Forex Tester system comes from the fact that as a stand alone application and with access to historical data, traders can back test their trading strategies. One of the ideal ways to fine tune or tweak a trading strategy is to execute the strategy, analyze, view the results and tweak any parameters.

If you were to use your demo trading account, the biggest problem is that you are not able to go back to fix your trading strategy. Of course, you can always tweak your strategy and test again, but the results might differ consider how the forex markets continue to change by the minute.

This is where Forex Tester comes into play. The back testing software offers a great environment for serious traders to test their strategies, fix any parameters and replay the trades. This provides great insights for the trader and is also able to show how various parameters to your trading strategy can play out differently.

If you were to test your strategies on a live account, although with small capital (such as micro account) the outcome of your trades still fall short and does not provide enough analysis to check if your strategy really works or not.

From a beginner’s perspective, the first step for anyone to learn to trade forex is to trade and analyze their trades. Most beginners prefer to start with a demo trading platform. While this offers a simulated environment of the currency markets, if you were to really learn forex, then perhaps if you opened a short term buy order on EURUSD and lost money, there is no way for you to check why you lost out on that trade.

Forex Tester on the other hand, makes it possible for traders to rewind and play out the scenario, thus giving you great insights into what went wrong on the particular trade and thus helps you to learn from every trade that you place using the trade simulator.

To summarize, refer to the table below on the advantages of using the Forex Tester software.

Option
Forex Tester
Demo account
Trade in a secure/risk free environment Yes Yes
Make use of an EA or Trading strategy Yes Yes
Test in a particular market conditions or specific periods Yes No
Pause/Resume/Replay Trades at your convenience Yes No
Cancel or Restore past trades Yes No
Ability to control the speed/time of testing Yes No
Test the same strategy against multiple/variable parameters Yes No

Forex Tester – Minimum configuration/System requirements

Forex Tester - Trade Simulator Screens

Forex Tester – Trade Simulator Screens

Operating System Windows 2000, Windows 2003, Windows XP, Windows Vista, Windows 7
Processor min. 600 MHz Pentium III (or compatible); recommended – 1500 MHz and higher
Memory min. 128 MB RAM, recommended – 512 MB RAM and higher
Disk space 100 Mb for installation, 2 – 5 Gb for extra data imported depending on its size

**Forex Tester is compatible with Windows machines and works flawlessly with either Windows 7, Windows Vista, Windows XP and other similar versions.

Purchasing and Installing Forex Tester

The Forex Tester system can be purchased per license basis and pricing starts from $199 for one license. By purchasing one license, you will be able to install and use Forex Tester on one computer. Note that you cannot use the same license to install and use Forex Tester on multiple computers. This means that you need to purchase additional license. The more licenses you buy, the lesser is the price per licenses.

Refer to the table below for Forex Tester pricing

Number of licenses
Price for one license
Total
1
$199
$199
2
$174
$348
3
$159
$477
4
$144
$576
5 & more
$139
$695

When you purchase Forex Tester, the system comes with a default history of 1 month. This is due to the file size and the bandwidth constraints. Of course, you can download more historical data from www.forextester.com/datasources.html for FREE. The historical data is available from the year 2001 and is updated every month.

Forex Tester – Trial Version

If you are unsure about using Forex Tester system, then you can always download the FREE Trial Version which offers the same functionality but with limited features. For example, you would not be able to test your strategy for more than one month. Your testing periods are limited to one-hour time frames after which it is automatically closed. You would not be able to save your test results to analyze them in detail.

However, priced at an affordable $199 per license, the Forex Tester system is a must have trading tool for any serious forex trader.

Using Forex Tester from an ECN Trading perspective

It is a known fact that the pricing you get to see vastly differs from a market maker forex broker to an ECN forex broker. Forex Tester offers historical data from test accounts that are set up with ECN brokers such as FxOpen (read the FxOpen Review here), FXDD, Alpari and Forex.com and thus able to provide an almost accurate pricing on the feeds.

Traders can make use of the subscription service in order to choose which broker they want to get the feeds from, including real time tick data.

Traders should note that the Forex Tester system is not a replacement for your forex broker but rather offers a trading environment that allows you a very high level of control in order to test your strategies or to learn forex trading. The Forex Tester software is constantly upgraded and also offers an active traders community which is free to join and you can post questions and get answers. Be it in regards to testing strategies or questions about installation and configuration.

Click here to purchase your copy of Forex Tester!

Forex Tester 2.9 Update – new Features

Here is the list of new features in Forex Tester 2.9. update:

  1. New additional full support of Range Bars into Forex Tester. Now you can open charts with Range Bars and use them like Forex Tester’s regular charts. You can apply indicators, draw graphical objects and save/load templates. So now almost all chart functions are available for Range Bars charts (except “step forward by single bar/step backward by single bar” function in Pause mode).
  2. Restriction on maximum 5 parameters for optimization was removed from Strategy optimizer. Now you can optimize your automatic strategies using more then 5 parameters.
  3. New event handlers OnPause and OnTestCompleted were added into strategies API
  4. Linear regression channel tool was added
  5. “System Error 5″ bug was fixed
  6. “Access violation” bug which was happening during the exiting from Forex Tester was fixed
  7. The core of the program was optimized so Forex Tester works a bit faster now.

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One Response
  1. Roman

    Aug 14. 2012

    I currently trade with VantageFx. I would like to make use of this back testing software. My concern though is on the historical data. How accurate is it?