The importance of backtesting is so often overlooked by Forex traders. And that’s understandable, backtesting is a very tedious and rather difficult task to do manually. And we all know, people want to avoid things that require too much effort. I know as I do myself.
You probably know that the percentage of winning vs. losing trades and the average risk/reward ratio is the cornerstone of a successful trading strategy. The higher they are the better your system is. With Forex Tester you can discover this, and much more quickly and effortlessly.
Here are 7 reasons why Forex Tester is an essential tool for all traders that want to make consistent profits trading Forex:
1. Forex Tester saves your precious time.
- By back testing your strategy with Forex Tester you gain valuable trading insights in minutes, that would otherwise take months and even years of live trading to gain the same knowledge and experience required for successful trading.
2. Forex Tester saves your money.
- Basically you have a very low-cost, high quality tuition rather than pay the market with your mistakes and nerves.
3. Forex Tester saves your nerves.
- Do you know how frustrating it is to trade a losing system, while believing it’s great? By backtesting it you can cut it off right away.
4. Forex Tester reveals to you the percentages of winning and losing trades.
- I was literally enlightened after I first backtested my systems, when I discovered that most of the systems that were sold, had on average 30% winning trades and LOWER! Now, would you ever take a strategy to your live trading account if you knew it only had 30% winning trades?
5. Forex Tester reveals your exact winning and losing amounts in both pips and dollars.
- It’s even more interesting that most trading systems, aside from having very low winners percentage, also have bigger losers than winners. By backtesting you exactly know how big will your winners and losers be.
6. Forex Tester reveals to you if the strategy works better in a trending or sideways market.
- What you’ll discover is that one strategy will work great in a trending market and do terrible in a sideways corrective market, while another system will be the complete opposite.
7. Forex Tester reveals to you how the volatility of the pairs changes over time.
- A few months down the road, the daily range of today’s market could be just the hourly moves of the pair. This is very important, so you can manage your risk properly by adjusting you position size.