Backtesting Forex Strategy


The use of forex software in trading has been going on for a long time. Different foreign exchange programs have different features and functions that make them more attractive to customers who choose to use them. Some of the most popular forex software include: forex strategy maker, forex strategy trader, strategy generator, auto chartist, forex tester, genetic maker and genetic maker.

Forex Strategy Builder - This is a forex strategy return test that is commonly used to model and build a forex strategy using a variety of technical indicators in addition to historical data. The type of data most commonly used is real data, which is commonly used to model the trends that different foreign currency pairs are likely to pick up over time. Once the data set is taken through this program, it reveals graphs, figures and logs of possible transactions. The program also creates a virtual bank account that reflects the account changes with each transaction.

Forex Strategy Trader - an automated trading platform powered by MetaTrader. This particular program is preferred by most people because it has the ability to download any strategy created with Forex Tester Strategy Builder. In addition, it also allows you to automatically sell the same strategy in the foreign exchange market, reducing the user's workload. Forex traders can also use their visual interface to create new strategies. Traders often use strategies that consist of technical indicators, along with the rules interpreted by this software. With this software, as well as creating new strategies, traders can easily access potential rules as well as groups through a variety of drop-down lists. Once the strategy is developed, the Forex trader is only asked to call the MetaTrader terminal, then click on "Start Automation". This position makes strategic forex traders one of the most popular forex trading software on the market.

Generator Strategy - This is a simple program that has the ability to combine all the indicators as well as the available parameters in an attempt to determine which trading strategies have been successful over time. With this forex trading software, users can just enter the numbers and come up with a strategy that has proven successful over a long period of time. In addition, users of this option have the ability to specify a number of options, which may include: choosing between and using different stop loss levels, as well as the maximum logical location to enter or exit, and controls and signals. Can be used for behavioral conditions. This specialized software is often used by more experienced marketers who know their way to the program.

Traders need to be confident about the technologies they want to market, or their fates may face hardship in the face of a recession.

If this confidence is not built through a reverse check process, market practitioners may easily be tempted to move away from the system during long return periods. Rolling system testing can help identify unavoidable inventory surveys that they will potentially face and ensure accurate setup in the early stages of system development.

The advantage of the choice strategy test is that, as mentioned above, the trader may be familiar with the approach he wants to trade directly. Computer simulation testing can involve a large number of useful statistical observations related to a trading method and can be used on a mechanical or predictable basis. Any of the test methods are valid, and the system you want to test will affect the technology you use.

Before starting the test, document the basic principle of the method you will be testing.


The following is a simple trading strategy for illustrative purposes:

• Enter only from 07:00 to 13:00 GMT Monday to Wednesday.

• Enter your business. Today a high candle is delivered. Start trading when the price is 10 points higher than the inner bar.

Quit the business. Exit when an additional 50-point pause is activated.

The above basic rules may be based on an inspection. You can test any forex trading strategy. You need to test the system under different market conditions, including range and trend duration. Also, check the strategy for different currencies, as some strategies work better than others for certain instruments.

Here are some of the components I document in a manual test session, in addition to the basic rules that I define as commercial input and output:

Will the trading strategy work for some currencies and other currencies?

How was the method performed over a period of time?

What does the most effective way out of each business transaction indicate? To what extent did the business achieve this before it was reflected?

• Does this system provide better results with more or less severe exhaust losses?

Did I influence the trading system by removing the liquidity periods of the event, ie were there no restrictions on holiday periods in the US or Europe?

• What is the maximum clearance limit?

Does this method work well in periods of trends?


Use the above point as a starting point and add everything related to you. Don't risk trading your money until you've met yourself.