Hello, didn’t mean to resurrect a dead thread, but wanted to give a thumbs-up on Forex Tester software. I used the free trial for awhile and then determined it was a tool I had to have. It went on sale for about 25% off I think around Christmas and I snagged it.
I do not use Forex Tester for automated testing, although I understand it can do that to some degree. I am primarily a price-action trader and I like FT for its ability to simulate the market in a way that can’t be done with just Metatrader.
I believe with FT software, you can “forward test” in a sense, because you are simulating live market activity without knowledge of what comes next. After loading tickdata, you can step forward in a highly realistic way and actually place trades as if on a real broker platform. From bar to bar there is some missing information (for example, ticks occurring in the same bar) so the software can randomize this for better simulation. (hope I’m explaining that right)
As a price-action trader, I work mostly with the higher timeframes and prefer to use FT in a manual mode where I am advancing the bars myself (it lets you choose the speed of the advancement… so I can advance every 5 minutes at a time, or even tick by tick). But for short term traders and scalpers, you can put it on auto-fire mode and it will advance at any speed you are comfortable with. For example you could set it to fire bars at you at the same speed they normally appear in the live market.
The other advantage to FT software, as I understand, is that if you do program the auto-tester (note: may require some high-level programming skills, I’m not sure – I don’t use it) … it can take into account an entire portfolio. I think MT4 can only test 1 pair at a time. So in the case of automated backtesting, it is helpful to see the global view of the portfolio with potentially multiple strategies executing simultaneously.
The other thing I really like about FT is that the author has made it extremely similar to MT4 in functionality, so there is very little learning curve. It also has an active support forum.
There ya go… off my soapbox. Just wanted to throw in my 2cents that I think it’s a decent software and worth the ~$100 if you are serious about testing. I was greatly disheartened awhile back at what appeared to be “manipulation” by Metaquotes with regard to the use of tickdata in their Strategy Tester feature. At that time, I stopped using MT4 for backtesting altogether based on what I felt was a lack of data integrity.
PS: I haven’t heard of the other product mentioned in the above reply, I will check it out.