I'm been using Forex Tester for a long time. But there were a couple of versions that I didn't recommend because they had some serious bugs. So will Forex Tester 5 be a zero or a hero?
My testing has shown that Forex Tester 5 works well and does have some useful upgrades. The upgrades are incremental, but given that the cost is the same, I feel that version 5 is worth the money.
Keep scrolling to get the details.
Watch the video or get the text version below the video.
Where Can I Backtest Forex Trading Strategies?
This is the question that led me to Forex Tester (FT) many years ago. Since then, many different backtesting solutions have come to market.
I tested them in this video to see how Forex Tester compared. FT was the winner of that shootout, but I found that one of the other software packages did have some legitimate benefits.
However, at the end of the day, if you want the very best backtesting software publicly available right now, FT is the way to go.
Now let's get into why I believe that.
The biggest cosmetic change in Forex Tester 5 is the menu at the top of the screen. It looks very similar to the “ribbon” menu in Microsoft Office.
I like how the icons are arranged and the layout makes it easy to find things because they are categorized in a very logical way.
This type of menu is much easier to use and is a welcome addition. Forex Tester 4 had a very small and compact that made it really hard to use on a tablet.
So the menu is a great improvement in version 5 and I really like using it.
Another new addition is the strategy optimizer. It allows you to upload FT automated strategies, or MetaTrader EAs.
You can then do an automated backtest in the software and look for optimizations.
This is similar to the strategy optimizer in MetaTrader 4 and 5.
Forex Tester 5 also goes one step further and they provide automated AI programs that are supposed to help you speed up the process of optimizing your automated trading strategies.
I'm not into automated trading, so I haven't tested this feature. But this can be useful for people who are into trading bots.
Forex Tester also added a notes section, which is really handy. The notes are stored in each backtest and allows you to jot down ideas in each test.
Here are some ways to utilize the Notes section:
- Record ideas on how to change the system for the next test
- Note trade dates that you want to go back and review later
- Write down questions that you have during the test
- Note a chart pattern that you see that you might want to test later
- Journal trades as you take them
- Record your impressions before and after the test
If you store your notes in another place, then it's easy to lose them. Having your notes in the backtesting file is the best solution.
Visual Risk/Reward Tool
Now Forex Tester has this tool available in version 5.
To access the tool, go to Charts > Graphic Elements > Risk/Reward Tool.
Then add the tool to the appropriate area of your chart. Here's what that looks like.
This is a great addition to the program. However, if you look closely, there's something wrong here.
The Risk/Reward ratio is not calculating correctly.
As you can see in the example above, this a buy trade. Since the profit target in green, is bigger than the stop loss in red, the ratio should be greater than one. But it's not.
I'm sure that they will fix this at some point, but the solution is simple. Just use the opposite tool and you'll be good.
So if you want to calculate a buy trade, use the sell tool, and vice versa.
Multiple Windows at the Same Time
This is one of the biggest advantages of Forex Tester. It's been available in previous versions, but I want to point it out here because it really helps.
In Forex Tester, you can have multiple windows open at the same time. This allows you to watch multiple timeframes and currency pairs at the same time.
Watch the video at the top to see it in action. It's a really handy to be able to track support/resistance levels on multiple timeframes, track correlation between markets and take trades on multiple pairs at the same time.
I use this feature to watch the next higher timeframe, from the one I'm testing.
Easy Forex Builder
Let's be realistic.
It's actually really hard to create an indicator/EA builder and give it the ability to everything.
There are many circumstances where you really do need to know how to code, or hire a programmer to do it for you.
Therefore, any “no-code” tool will have limitations. But the Forex Tester team has been building their platform for creating indicators and EAs. It was originally called Visual Strategy Builder, but they have since changed the name to Easy Forex Builder.
They do have a free version that allows you to download 2 strategies/indicators per month. But if you want more, you'll have to pay the monthly fee.
I wasn't particularly impressed with the original beta VSB tool, but you can give it a try and decide for yourself. They may have improved it. In all fairness, I haven't seen a no-code tool that can create complex programs, so EFB is not alone in this regard.
However, I do feel that these types of tools very good for testing basic ideas.
Maybe test a simple strategy with 1 or 2 indicators. Then you can do manual backtesting to refine the idea.
If the idea works, you can code it up or have a programmer do it for you.
At the time I did the video at the top of this page, the education modules didn't seem to work yet. But now they have the Basic Courses working.
Each lesson is really short and to the point. I went through a few of the lessons in the Basic Courses and they look good.
As you can see, the graphics could be better, but the information is useful.
Downsides of Forex Tester 5
There are a couple of downsides in this software. Obviously there's the Risk/Reward tool bug that I mentioned above.
Another thing that isn't optimal in FT 5 is that the playback can get really slow if you have certain type of indicators on the chart.
I would guess that a lot of that has to do with how complex the calculation of the indicator is, and how many you have on the chart at once. Indicators like the Parabolic SAR can take more time to calculate.
So the solution there might be to get a faster computer. Since I don't use many indicators, if at all, this isn't a problem for me. If you are concerned about this, be sure to download the demo below and test the speed for yourself.
Finally, as I've mentioned about previous versions of Forex Tester, a huge benefit would be a legit reporting system in the software.
They have the basics…win/loss percentage, max losses, trades per month, etc.
But real traders need much more. There was a website that came close in the past, but they weren't able to make money and went under.
In my opinion, upgrading the reporting system would be a huge upgrade to Forex Tester.
Maybe in Forex Tester 6?
Forex Tester 5 Download
If this appeals to you, get a free demo of Forex Tester and you can give it a try on 1 month of backtesting data.
Use the link in the next section to download the demo.
How Much Does Forex Tester 5 Cost?
The regular price for Forex Tester 5 is currently $299. However, if you wait for one of their sales, you can get it for much less.
On top of that, I have a coupon that will give you an additional discount on top of the sale price. The final price you pay will depend on the sale that they are currently running.
So be sure to check this page to get the coupon and the best deal possible.
Final Thoughts on Forex Tester 5
Backtesting is one of the best ways to develop and practice a Forex trading strategy.
I skipped a few of the features in FT 5 that I already talked about in FT 4. Most of the same features in FT4 are in 5, so if you want to learn about more of the features in Forex Tester, then see this review.
Otherwise, I still recommend using FT 5 for manual backtesting.