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Whether a newbie or a pro trader, forex trading can be very risky if you don’t have a successful trading strategy. However, these trading strategies cannot be simply passed down from one person to the other. Rather, you need to learn and develop your own tactics through experience, and this is where Forex Tester comes in.
Forex Tester is a backtesting software that lets you test different strategies using historical data so that you can learn how to trade without risking your money and also verify which tactics work. This software has been a leader in the market since 2006 and is currently is in its 4’th version, which is Forex Tester 4.
Why Learn Forex Trading using Forex Texter
Forex Tester 4 is equipped with very useful features that include:
Historical News Service
A large part of what determines market performance and currency valuation are economic and political events. With this information, you can be able to make more informed and accurate forecasts, which will lead to profits.
This software features a historical news service that shows you when the news appeared, the currency the news belongs to, the time period that the news had impact and predictions of financial experts at the time regarding those events.
As part of the learning process, this information helps you to relate the effects of certain past events to the forex market for better prediction. You can also get hints for planning your trading strategy using green, yellow and red color markers, as well as news alerts on the chart.
Visual Strategy Builder
A Visual Strategy Builder (VSB) is a tool that helps you to easily create EAs (expert advisors) from scratch without requiring any coding skills.
This way, you can create an EA that fits your personal preferences via a drag-drop interface, then generate downloadable files in either MetaTrader4 (MT4) or Forex Tester 4 (FT4) format for use in this software or MetaTrader4.
MT4 to FT4 Converter
This feature lets you convert all the necessary indicators and expert advisors from an mq4 format to a DLL file in very simple steps. This is necessary because Forex Tester 4 can only read DLL files.
Money is at the center of forex trading and this backtesting software helps you manage your profits in the most real way possible by deducting broker commissions automatically when trading is closed.
However, you must specify if the commission is charged as you open or close the trade so that the system can match your broker account.
Other than that, Forex Tester also assists you in risk calculation and uses percentage calculations in the market order to determine the lots so that you don’t do it manually.
You also get a crosshair cursor that makes it possible to measure the number of points, bar range, final point price with the percentage change, the date and time of the last candle, the distance between two candles and the time it will take to get to the last candle.
With this software, you can trade different currency pairs on different time frames at a time. All these trading charts will be synchronized so that you can test the success of your strategy in different combinations.
In addition to this, you can test out different strategies just like in a real forex broker account, thereby allowing you to achieve the most realistic trading experience with a steep learning curve.
Organization and Synchronization
All the indicators in Forex Tester are grouped by their respective functions and this makes it easier to navigate to the one you want. These groups include volume, volatility, adaptive, oscillators and custom indicators.
Other than that, you get some organization features such as a global crosshair cursor, which synchronizes all the crosshair cursors on your charts so as to maintain the timeframe differences when pointing on one chart.
More features on this include simultaneous chart scrolling and synchronization of graphical tools on all chart windows with the same currency pair.
To give you a snapshot of your trading performance, this software gives you a statistics report containing profit and loss trades, income, days and months processed and other data for easy analysis.
You also get a profit chart that shows the largest changes in equity, margin, balance, and drawdowns, thereby indicating your best and weakest trading aspects.
Both the statistics report and profit chart can be exported to excel for better analysis
Access to Reliable Historical Data
With backtesting, you need reliable data for proper learning and Forex Tester is provided with reliable 18-year data in 3 subscription types, which are: Basic, Standard and VIP.
The highest package (VIP) gives you the best historical market data, which includes:
- 18 years of 1-minute data for testing your strategy over long periods.
- 9 years of tick data for a realistic simulation of live trading.
- 814 of the most popular currency pairs.
- NASDAQ, S&P 500, Dow Jones and 8 other popular stocks as alternatives to forex trading.
- Gold and Silver data.
- 12 brokers.
You can also import your own data and in either option, it is possible to adjust the swaps, leverage, spread, initial balance, margin, lot size, digits after profits and many more.
Another important feature is that the backtesting can be done on other instruments such as CFDs, indexes and cryptocurrencies, which expands your learning scope.
You can use EAs on Forex Tester and this enables you to:
- Analyze your strategy’s performance in real-time on multiple currency pairs and time frames, as well as on tick data such as floating spreads.
- Make parameter adjustments on the fly (market conditions, indicators, etc.).
- Pause, rewind, and play for analyzing the strategy’s behavior.
- Test more than 1 EA simultaneously or multiple instances of the same EA.
- Customize the leverage, spread, and swaps to match the situation on the real market.
It is also possible to combine manual and automatic strategies, for instance, doing automatic trade input then exit manually or the other way around. This enables you to test both solutions before putting a lot of effort in developing automatic strategies.
Forex Tester gives you a lot of control over the backtesting process because it allows you to:
- Adjust the simulation speed.
- Save, resume and even send projects to other Forex Tester users.
- Upload new data to an existing project.
- Move through few adjustable steps on every click (by pressing the space key).
- Create your own timeframe template.
- Choose between ordinary or forward testing only mode.
- Check whether you have enough symbol data for a project. If not enough, there is the option to download the data or choose other options.
This software allows you to apply Daylight Saving Time (DST) so as to get the convenience of automatic calculation of the summertime shifting for any trading session you want. All you have to do is to wait for all the ticks to be generated.
Alternatively, you can use custom time settings if you don’t want to deal with the different time zones, or restart a project from a specific date without creating a new one.
Replay/Learn from Mistakes
A replay of the trading period enables you to analyze your decisions so as to spot your mistakes and improve your strategy. Forex Tester allows you to load your trading history from MetaTrader4, after which you and even your mentor can see what went wrong.
Easy to Use
There are a couple of factors that make this software easy to use. For starters, it is available in 16 languages (English, Italian, Russian, Dutch, Spanish, Portuguese, German, Japanese, Slovenian, Hungarian, Polish, Indonesian, Thai, Vietnamese, Turkish and Czech), which caters for clients in different demographics.
Secondly, it has a simple, user-friendly UI with icons and menus positioned intuitively for easy use. The interface is actually very similar to MT4 and therefore, it will be easy to navigate through if you are familiar with MT4.
You can also take screenshots by a single mouse click, as well as create and attach notes to charts.
The system contains multiple oscillators and indicators, and it allows you to use indicators from MT4 or create your own from the API.
There are also various graphical tools at your disposal such as extensions, retracements, arcs, fans, time zones, and other Fibonacci instruments, as well as horizontal, vertical and polylines.
Customization is important because it enables you to make the software suit your preferred user experience. In this case, FT4 allows you to switch between candlesticks, bars, lines, range bars, and a few custom charts, with all of them being synchronized and usable simultaneously.
Additionally, you can customize the chart’s appearance and organize the different chart windows however you want.
If you encounter any issues or problems using FT4, you can contact the team behind this product via email or online chat. You can also check out the FAQ’s page on their website, which is populated with all kinds of questions about the usage, features, pricing, etc.
Forex Tester 4 starts as a Free Trial version, but this is limited in such a way that:
- Historical data is limited to 1 month only.
- You can only test continuously for at most 1 hour, after which you can begin another test.
- You can’t save or load projects.
- Historical news is only available for USD.
The full, Unlimited version is unlocked by a $299 registration key and with this, you get all the features above plus the following:
- 10 manual strategies.
- 5 EAs that are price action-based, together with detailed strategy instructions.
- A guide to the 20 top indicators that you should try so as to improve your trading.
- 3 white papers: a guide on how to select a forex broker, an 11-step plan on how to develop profitable strategies and a risk calculation/money management table.
However, even with the Unlimited version, you get a Basic historical data subscription, which you can upgrade to a Standard or VIP plan. These can be broken down into the table below:
|Basic||Standard (Minute Data)||VIP (minute and tick data)|
|Price||Free||$30/month, $179/year, $409 one-time cost||$39.99/month, $199/year, $439 one-time cost|
|Historical News||USD||9 main currencies||9 main currencies|
|News Type||Important only||Medium and highly important news||Low, medium and highly important news|
Is Forex Tester Right for You?
Some people might argue that demo accounts in actual broker accounts are good enough to learn from but they are quite limited due to their short trading periods.
Backtesting with Forex Tester is particularly advantageous because it lets you test your strategies over longer trading periods, which gives more reliable results for better learning.
Additionally, this software is designed to meet the needs of different trading styles such as mechanical trading, discretionary trading, scalping and non-forex trading on metals and CFDs (stocks and indices).
Therefore, if you are interested in any of these trading styles, Forex Tester 4 is designed for you.
Pros and Cons
- Ideal for mechanical, discretionary, scalping and non-forex trading.
- User-friendly UI with realistic trading environment features.
- Reliable lifetime support.
- A wide array of tools and trading indicators.
- Easy import and export of price and trading records.
- Expensive recurring data subscription costs.
- Only compatible with Windows OS (Windows 2000 to Windows 10).
In conclusion, Forex Tester offers unparalleled realism in recreating the actual forex market, which allows you to learn through 4 main steps, which are: improve/invent your strategies, simulate using historical data, get results and do an analysis, then repeat the whole process.
The software is also very easy to use because it has both manual and automatic trading systems for beginner and expert traders, and also features an API for people with programming skills.
All in all, this product is worth checking out and you can begin with the free trial version so as to learn how it works before spending your money on the license.