TESTING YOUR STRATEGY - USING A FOREX TESTER

If you're going to start trading on Forex, you're going to need to gain some experience first. Demo trading is one way, but it's difficult to get the full Forex experience from a demo account. They're not the same as live accounts. But there is a type of software out there that can help. It's called a Forex tester.

ABOUT FOREX TESTERS

A Forex tester, also known as Forex simulator, takes historical data that you input into it and lets you trade on that data like you would trade on the live Forex market. You buy, sell, set Stop Losses, use indicators, all of the things you do when you actually trade Forex live. With this kind of learning tool, you can hold on to your money while you still figure stuff out.

FOREX TESTERS VS. DEMO ACCOUNTS

With a tester, you're using real trading date from as long ago and as long a time period as you want. It's a fantastic way to figure out just how the Forex market trends and how to recognize patterns. Compared to a demo account, it's like playing spring training in the major leagues compared to playing a baseball video game - the games don't count for real, but you're still going up against major league pitching. Until you're prepared to play for real, it's wonderful for learning the ropes.

FOREX TESTER OPTIONS

Forex testers come equipped with actual Forex indicators. Learn using Moving Averages, oscillators, and momentum indicators to help make sense of the foreign currency market and the ways to find opportunities to make money. Trade in multiple currencies as well. US dollars, Euros, gold, silver, money from around the globe - you can actually test your strategy with all of these.

HERE ARE SOME ADVANTAGES TO FOREX SIMULATORS

A Forex tester simulates the actual feel of trading. It's all in real-time, you find out what the market looks like as your data is read by the program. So you make decisions the same way you would on the actual market. You won't hurt your strategy by making decisions based on hindsight. Another advantage is time management. If you want to speed things up you can, if you want to slow things down, you can do that too. You can test out your strategy over the course of days, weeks or months in a very short amount of time. Demo accounts only let you test your strategy in real-time. Imagine doing a year's worth of trading in a couple of days. Because of this, you'll never have to wait again to see if your strategy is a winner. You can find areas to improve in very short order. Conceive, test, and improve (or discard) in no time at all.

FOREX SIMULATORS AND TRADING ROBOTS

Forex simulators are great for testing automated trading systems. Forex simulators are just as effective testing trading robots as they are testing manual trading strategies. You'll find out very soon, too, because you can control time. {This is great if you're shopping for a Forex robot, because most have guarantee periods where you can get your money back, so you can test the robot with a Forex simulator before you even spend a penny on it