Backtesting systems?

Hey guys,

I am now at a point in my trading journey that i have found a strategy that i like, but now want to back test it.
(i have already traded using the strategy but back testing gives confidence and piece of mind when you find yourself in a drawdown)

Now, i have never backtested before and was hoping to be pointed into the right direction, i have heard of and looked into Forex Tester 3, but i am assuming this is an automatic back testing system. I think doing it manually first is better?

any other back testing programs out there?
or how does one back test manually?


“The fastest way to test your system is to find a charting software package where you can go back in time and move the chart forward one candle at a time. When you move your chart forward one candle at a time, you can follow your trading system rules and take your trades accordingly.” - ‘How to Test Your System’ in the School of Pipsology !

You can use MT4 or any other software to backtest your system…Unless you mean something else with manual backtesting ?

I’m not quite so sure.

It seems to me that an automated bulk backtest is much faster, and its findings might help in deciding what to backtest manually, avoiding the potential problem of using up an awful lot of time, energy and effort on something that might turn out to be a “non-starter”?

Loads, but depending on one’s needs, wishes, capabilities, technical skills, and so on.

If it helps at all (which actually it may not), I used to use “Forex Tester 2”, the precursor to the one you mention above, many years ago, and for my purposes it was very good; I liked it.

I never did much manual backtesting: I used to backtest a lot using automated software and then sometimes forward-test manually on a demo account the [I]tiny[/I] proportion of things that appeared potentially worthwhile. This was all before I switched from an indicator-orientated perspective to a price-action one, so it’s kind of “ancient history” now. :8:

Forex tester 3 is the best piece of software out there for backtesting. I would definitely recommend you to try this software. I personally love this software and you can do manual backtesting also…

I’ve been looking at forex tester 3, I’ve tried the demo and like the way it works but it’s of no real use for the strategies I want to test because it’s limited to 1 month of testing. The only thing holding me back is the price, £240 ish ($299) seems a bit steep considering I don’t even have a live account yet, and don’t intend on having one until I’m confident that I have a chance of success.

It seems to have shot up in price recently though, while looking into it I saw someone last year mention that it was around £75, if it was that price now I would have bought it already!

I understand that it’s a tool to help make money, so in theory it’ll pay for itself, but for it to pay for itself I have to be confident enough to trade real money, kind of a catch 22!

I’ve just checked the forex tester site, it’s actually £304.01 with VAT added.

Interesting question. Backtesting seems like such an obvious things to know how to do. Try scrolling your chart back in time and acting as if you were looking at live data, apply your method, smh.