If you want to trade forex successfully, backtesting works like a ladder for both new and expert traders.
There is much software available in the forex market but you have to know about the right one. This is possible only if you try to understand each one thoroughly.
After getting the entire info, you will be able to apply the backtesting that suits your trading system.
What is the forex backtesting software?
There are many backtesting tools but some of them can match your trading strategies. The most famous and working backtesting software are Trading View, MetaTrader 5, Meta Stock, Ninja Trader, Trade Ideas, Trend Spider, and Interactive Broker. If you understand them properly, you can select the backtesting according to your trading plan.
You can apply these backtesting tools for each kind of trading market. If you think backtesting is an easy task, you are wrong…
You have to do a great effort and go through the hard requirements of backtesting tools. But later, you will get a successful entry into the trading market.
Let’s dive deeper into this post to have a complete guide…
What Is Backtesting Software
At first, it is essential to know what is backtesting software???
Generally, it is a crucial part of forex trading. It is said that all basic trading strategies of forex are imperfect without backtesting.
A backtesting software is a type of trading tool that helps you to consider the historical backtesting data. In forex trading, it works amazingly. A forex trader can have delicate trades on charts and decide a position to sell or buy a currency.
In the past few decades, it was difficult to check the results of trading strategies online. The process takes a long time like months and years. Now the technical progress makes the whole process very easy.
To conclude, we may say that Backtesting is a trading tool that will help you to collect data from the trading plans used in the past. It will also tell you that how these strategies work in the past. It is used to set prices and observe the returns in forex trading.
7 Best Forex Backtesting Softwares
You can see a big list of backtesting software on the internet. But not all of them do not have to work successfully. You have to choose the best one that provides you with a profitable trading platform.
But how can you do that?
To make it easy for you, we select the seven best backtesting software. Let’s discuss them with pros and cons.
1. Trading View
It is one of the best backtesting elements that help you to trade in an automatic, easy, and effortless way. It is possible to get your results only after a few clicks. It is easier than you think.
The most appealing quality of the Trading View is that it provides you with correct data and price charts. It also helps you to understand the charts before using any trading plan.
Pros:
- You can observe different economic tools in it.
- There are several trading indicators and systems without any fee or commission.
- Trading view backtesting results are outstandingly good.
- You can get access easily through the web.
- You can see quotes from other markets on this one-stop plan.
Cons:
- It has limited timeframes.
- It provides limited historical data in some charts.
- There is no basic review available.
2. MetaTrader 5
It includes the latest best backtesting tools. It is better than the other because it has many unique features. It provides a trading plan tester that helps you to test your trading plans before using them.
Moreover, it will also help you to test your trading strategies by using past data charts. Additionally, it offers to trade with different currencies and backtest many stocks freely.
Pros:
- It provides complete testing reports that will be useful.
- It makes easy testing for self-closing activities.
- Before applying any trading strategy, it will find out the best input framework.
- It will appealingly show you backtesting results.
Cons:
- It has no option for basic observations.
3. Meta Stock
It is a helping backtesting tool for newbies and for those who are not still experts in forex trading.
It provides you with an integrated platform as well as the advice of different expert traders so that you can understand this trading world. You can also get different skills from Meta stock at large scales.
Pros:
- It provides basic research facilities.
- It is best for forecasting.
- You can get direct backtesting only in one click.
- There is a lot of indicators and data.
Cons:
- It is best only for skilled traders in programming and scripting.
- It has no option to trade execution automatically.
4. Ninja Trader 8
This forex backtesting tool is also called “Profit Finder”. It is called so because it guides you to find out the loss and profit ratio in forex trading plans.
It is famous for its elasticity and it is easy to understand for new traders.
Pros:
- It is an adjustable software that you can use for any trading plan, indicator, and tool.
- It will show you a complete report about the working ability of your trading plans.
- It will help to read entries and exits of your trades.
- You can get a profit and loss ratio by adopting it.
Cons:
- It neglects changes in price and the latest news.
- Don’t show you time for opening and closing trades.
Trade-Ideas
It is the latest trading tool that you can find in the market easily. It is best for new traders because they can easily understand and use it.
Trade ideas are very rare in the forex trading market.
Pros:
- It will make you able to have an impressive look into the trading market.
- It will give a trader an easy and uncomplicated platform for backtesting.
- It provides you with surprising achievements.
Cons:
- Unluckily, it does not provide sufficient user configuration.
5. Trend Spider
Trend spider is a good backtesting software because it provides timeframes with scopes from one minute to a few months’ charts.
Additionally, you can get this type of backtesting tool in each economical market. The most amazing element of this tool is the plan tester. It allows you to write your codes.
Pros:
- It helps you to mark the trading modes and figure out the movement automatically.
- It offers you backtesting on different timeframes.
- You can transfer data easily.
Cons:
- You can’t get the facility of auto trading in Trend spider.
6. Interactive Brokers
This type of backtesting software is best for those who work as Portfolio Managers. It is the most powerful instrument that helps managers to set stock portfolios properly.
The most attractive point of this software is that it makes it easy for you to get a backtesting portfolio based on basic elements like Acid test and EPS growth.
Pros:
- It enables you to get access directly to the market.
- It provides all basic backtesting in the trading platform.
- You can get all the main elements through this software.
Cons:
- There is limited backtesting for chart indicators, supply, and demand.
Frequently Asked Questions
What is the best backtesting software in forex trading?
Meta stock is the best and powerful backtesting platform for brokers. Some other important software are Interactive Broker, Trading View, and Meta Trader 5.
Does backtesting work?
Backtesting works like a key factor in the development of trading systems. It is executed by reconstructing, historical data and the trades that occurred in past by using the same trading strategy.
Is there any free backtesting software?
Yes, there is a software known as Plynvesting that offers you free backtesting for your investment. Even you don’t have to write a single line code.
Final Words
Here are our final words on Forex backtesting software. As you know, there is a variety of backtesting tools in the market, but all of them are not suitable for your trading strategies.
The above-mentioned list will help you to choose the best forex backtesting software. For this, we have also mentioned some pros and cons of these tools.
So, that you can easily select the one according to your requirements. Don’t forget to share this informative post with your friends who are worried about backtesting in forex.
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