This is a journal of testing the Backtesting application known as Forex Tester 5.
If you have never seen a trading screen before, a typical screen consists of a chart area and many option boxes, icons or buttons that control what is shown in the chart area. Each chart package provider has different layouts but they are very similar to each other. Throughout these tests, I will be using the Forex Tester 5 software. A free download is available with limited test parameters at the link provided below.
Click the “Free Trial Download” icon near the top of the screen in the link above.
This is the first of a series of 12 weekly tests. In this first post, I am only commenting on the Quick Start Guide.
Forex Tester 5 - Quick Start Guide review
1 Basic Testing Actions (3 minutes)
Near the top of the screen, note Start, Resume, Restart, Speed of testing, Timeframe
Click “Start” A backtest simulation starts
/Pause / Resume
Timeframe section - timeframes from one minute (M1) to one month (MN)
Next, choose one of the timeframes (eg M5)
Speed of Testing. A slide bar to control the speed of the test
2 Market Order (3 minutes)
Near top of screen, Action / Orders - Market Order
A simulation test starts.
Click “Market Order”
A list of currency pairs opens. Choose a pair symbol.
Lot size. Choose a lot size (eg 0.1)
You are going to: Buy (go long) or Sell (go short)
Choose the “Buy” buttton
The bid / ask price appears near the foot of the box.
Set Stop Loss - choose the number of pips (30). Click the green arrow button to the left of the SL pips box, and Forex Tester 5 will display the stop loss price automatically.
(Optional) Set a Take Profit level in pips (eg 100). Click the green arrow button to the left of the TP pips box, and Forex Tester 5 will display the take profit price automatically.
Click “Buy” to place a market order (long)
At the foot of the screen you will see Ticket #1 - Open order. Buy 0.1 lot, date/time, open price 1.23379, SL 1.23349, TP 1.23479, market price 1.23374, swap 0, commission 0, points -5, profit -0.5.
The chart will show dashed lines as red (stop loss) blue (take profit) and a text box (Buy) with the price on the right scale in black background.
You can right click on an open order to perform actions (close, modify, create copy, close part position, close all position). Alternatively, click the Order tab at the top of the screen (next to the Home tab) and choose “close order” icon.
At the bottom of the screen click the “Account History” tab. The closed trade will appear as ticket #1 with a loss of -0.50. Deposit balance (in this demo account) 10,000, profit from closed trade -0.50, profit / loss -0.50 (-5 points), balance 9999.50
3 Add Indicator (5 minutes)
Click “Home”, See “List of Indicators” icon.
A drop down list of indicators appears. Choosing an indicator.
Choose “Trend” then subcategory “Moving Average”.
Parameters tab. A list of parameters appears in a new box. In this example the chosen parameters are: Period (5), Hshift (0), Vshift (0), MA type (simple, or SMA), apply to price (Close),
Then: Style (blue solid line).
Choose from the shortest (1 min) to the longest (1 month). Note that a moving average line appears on the chart.
Add an Oscillator (MACD). Click “List of Indicators” and choose category “Oscillators”, choose subcategory “MACD”.
A list of parameters appears in a new box.
Note: Common. Fast EMA period (5), Slow EMA period (13), SMA period (3), Apply to price (Close)
Styles MACD (silver - solid line). Signal line (red - dotted line).
Click “Apply”. The MACD oscillator appears below the main chart with its chart title "MACD, 5, 13, 3, close.
4 Run a Strategy (4 minutes)
A EURUSD test simulation starts. Many traders use Robots (or Expert Advisors, or EAs) in their trading. EAs are programs developed to follow some trading strategy and execute the trades automatically due to a pre-set algorithm.
At the top of the screen click the “Strategies” tab. Turn the “Strategy Execution” switch to “ON”. Forex Tester 5 has some built-in strategies. Click “List of Strategies” and choose “Awesome EA” advisor setting button (the cog wheel).
A parameters tab opens.
Symbol and timeframe. Double click the symbol line and chose EURUSD. Double click “Timeframe” line and choose “1 hr”. The line parameter changes to “60” meaning 60 minutes.
Leave the other parameters on their default settings - they can be changed later in a real strategy run.
The strategy is now enabled. The simulation shows buy/sell signals on the main chart. Next step is to check how the EA works in practice.
Click “Home” tab. Click “restart” to apply the strategy. Click on the “Account History” tab at the foot of the screen. As the EA opens and closes trades, according to its rules, the trades will be added to the Account History. Let the simulation run for a while. It stops at 19 trades showing a remaining balance of 9985.39.
5 Data Centre. (4 minutes)
Downloading / uploading historical data for your projects. Using the historical data feed for the backtesting process.
Create a first project instead of using default strategies.
Download enough historical data.
This opens a “DATA CENTER” icon. Open a Data Center Window. A drop down menu appears with lists of Majors (7), Crosses (9), Crypto (BTCUSD), Exotics, Futures, Indexes, Metals, Stocks (Canada), Stocks (EU), Stocks (UK) and Stocks (US).
Select at least 2 currency pairs from the list.
Click the “update from server” box.
Select “download part of history”
Select “to” and “from” date range (leave these as selected in the simulation)
Click “update” to continue
Click the Exit button.
The historical data is ready to be used for a new project.
6 New Project (4 minutes)
New tutorial launches.
Projects in Forex Tester 5 are like files where information is kept about every testing session.
Create a new project. Click the “Home” tab at the top of page.
Click the +New Project icon. Set Project name (eg EURUSDTEST18OCT21).
Select symbols (eg EURUSD, GBPUSD)
In tutorial, time period is set from 2018:04:01 to 2018:04:30. In testing quality, click “use 1 minute data”, click Next. Click “Create”.
Testing starts right after the project is created.
Summary and Comments
I read through the Quick Start Guide three times. The first time I skim-read the content. The second time I took notes about which sections of the software product each quick guide step covered. The third time I took some print screen / snippets of screens to make the text of my testing more relevant for the reader.
In summary, I think the quick guide is a good balance between speed and detail. I look forward to the next set of tests.
I’m happy to answer any questions on this application test thread.