Back Testing w/ Indicators and Simulated Trading

Hello, Babypips Community.

I am new to the forex world, and after having read up on it, I would like to do some back testing/experimenting. I have read the other back testing posts on this forum, and I have checked out ForexTester, Forex Strategy Builder, and SBFX 4. Yet, I remain confounded.

I wish to perform these back testing functions:

  • I want to back test on a wide range of one minute interval historical data.

  • I want to be able start at random points in history, put up the technical indicators of my choice with the parameters of my choice (for example, the length of ticks calculated in a moving average), and start running a simulation as though I’m trading in real-time from that point in history.

  • Ideally, but not strictly necessary, I would like to be able to place imaginary trades with imaginary limit orders and see how those do; but I can simulate that on pen and paper if the software won’t do it for me.

  • I would also like the option to specify strategies, such as getting in when two different EMA’s cross and RSI indicates oversold conditions, and only trading Tuesday and Wednesday mornings; and automatically calculate how well such strategies fair over time. (In real life, I would pay attention to the longer time interval market, eyeball stop-and-resistance levels, etc.)

Forex Strategy Builder seems too limited to input things as specific as when two EMA’s cross. SBFX didn’t seem to do the job either, but may have just gone over my head. ForexTester looked promising, but I was unable to tell from the demo version if the full version would do the trick, and I’m not eager to shell out a hundred bucks and change if I can help it.

There’s a good chance all of these tools are sufficient and I’m just getting technically overwhelmed, but I tried going to Help and Tutorials and remained stumped. I need something that can work, and that I can figure out how to work with my novice level of forex proto-knowledge.

If anyone has any suggestions, I would be most grateful.

Thanks, and I look forward to learning more about this new field.

Don’t be buying anything - Metatrader or Ninjatrader, both free - will do the majority of backtesting.
Metatrader is very popular, so you’ve got a great support base. But you need a developer’s mind to get your head around it.

Ninjatrader has a very simple interface for testing things like MA cross-over and oscillators, as well as its own language like Metatrader. For non-techies, NT was better for me, but horses for courses.

As for trading historical data as if it were realtime, look on Forexfactory for vhands, which works with Metatrader. Never used it myself but does the job apparently.

Those are very useful suggestions. I will pursue them. Thank you, Triphop!