Forex Simulator: Software To Test Manual Strategies
Forex Simulator is one of the relatively simple and visually understandable programs that allows you to test manual strategies in any historical period after downloading quotes.
The program is an MT4 application that allows you to combine its functionality with the basic toolkit of the platform. The test result report can be downloaded for analysis in various formats. A quick test option gives you a general idea of the state of the trading system.
Extended tests provide the most approximate results when trading on a live account. In this article, you will familiarise yourself with the functionality and capabilities of the Strategy Tester, with its settings and testing principles.
Forex Simulator: A Practical Tester For Manual Strategies
How can I know how viable is a strategy created or found on the internet? It seems logical to run on a demo account before real trading for real money, but this option also has disadvantages:
► What parameters must be adjusted in the configuration of the indicators?
► What indicator signals can be considered basic, which are minor?
► What stop levels should be placed and at what point should the strategy be stopped by sending it to optimisation?
► How long does it take to test a strategy on a demo account before launching it into the real market?
► What is expected in principle, operating under this strategy?
All these questions can be answered by a backtest, downloaded from the MT4 after testing the strategy in the previous periods. But it is not always provided and may have errors: different quotes, test methods, the broker functionality can drastically change the result. Because the best recommendation is to try everything for yourself.
Forex Simulator is one of the most interesting free programs to test manual strategies designed under MT4. On how to work with this program, what are its advantages and disadvantages compared to the built-in MT4 tester, read on below.
Forex Simulator Tester Summary
The use of simulators allows the strategy to be conducted over a time interval of several years in a few hours. The test result will show the maximum value of profit and loss, the relationship between the number of profitable and unprofitable trades, the average value of stops, the viability of the strategy in a period of strong fundamental spikes, etc. For more information on trading systems evaluation methods and parameters, read it here.
There are no perfect simulators, they all have their strengths and weaknesses that are manifested in the characteristics of their functionality. Forex Simulator is a simple tester, quite capable of satisfying the trader without much consultation.
Forex Simulator Features:
► Compatibility with MT4 indicators. There are no problems with the basic indicators. Regarding the combined, this question is more difficult. There are mentions in the forums that the tester could not always be combined with unique tools. It is necessary to experiment.
► Tests at different speed ranges. The tester allows you to rewind areas where there were no signals. You can make changes to individual segments, rewind the simulation backwards, and rerun it.
► Simultaneous tests at different time intervals. Here we are dealing with strategies that are based on the analysis of multiple time frames at the same time. The trader opens three screens with intervals of minutes, hours and days, looking for a coincidence of a short and long-term trend.
► Time intervals and non-standard charts. You can set time intervals H3, M2, etc., in the basic version of MT4 this possibility does not exist, but you can add a script. For Forex Simulator, the script is not necessary.
► Quote providers: Dukascopy, TrueFx. Historical data from these providers is considered accurate. If you have another option, download your quotes. For example, it is believed that it makes sense to use the quotes of that broker that is worth working with.
► Synchronised calendar. On the test calendar, you can overlay economic calendar events to quickly see the root causes of anomalies.
► Set up automatic order activation and follow established risk management parameters. This is more inherent in simulators that work with automated trading systems, but manual strategies may be helpful to someone here.
Test results for the entire period or a separate section with all open transactions and results are transferred to Excel. The program can work after downloading the quotes autonomously, without internet.
In other testers, these features are also found, but only in paid versions.