Forex Traders: Can Testing Software Help Your Become A Better Trader?
Welcome back!
There must be some reason some Forex traders are more successful than others. Put another way, if two Forex traders were trading the same Forex trading system, why would one gain huge profits and the other struggle to break even? You would think the same system would yield the same results, but it is just not so.
If you’ve even been involved in sports, then you know this to be true. You might have the same coach, the same equipment and the same teaching of the fundamentals… but there is always some players that are just better than others. But here is the good news, you can practice to become a better trader by using Forex testing software, just like you would practice to master the skill of a sport.
Learning to trade Forex takes time. But that time is extended if you try to learn on a DEMO account. And no, I’m not recommending jumping straight to a live trading account. I’m suggesting practicing with Forex simulation software, which allows you to test and practice your trading system faster.
What Is Forex Testing Software?
Basically, Forex testing software resembles a real Forex trading platform (like the popular Metadtrader4). You download REAL historical data into the software for any number of years, and then you can test your system manually. This is like backtesting an Expert Advisor, but your are testing everything manually.
Here Is An Example Of Using Forex Testing Software
Recently, I took a popular Forex trading system, (Forex Avenger) and put it to the test using a testing software program. I downloaded real, historical data. I set up the charts like instructed. And then I went about trading the system for an entire YEAR in about 3 hours.
The system used a 1 hour chart. If I was testing this on a DEMO account I would have had to watched the charts every hour on the hour to look for trade set ups. But with the software, all I had to do was click the “space” bar and move ahead hour by hour. When the trade set up appeared, I would set it up like instructed. Then click, click, click ahead to see how the trade developed.
There are three great advantages to testing the system in this way…
First… I could tell how the Forex trading system would have performed over an entire year (in this case 2008).
Second… I got a lot of practice! I did over 130 trades in 3 hours (instead of a year).
Third… I was able to identify potential ways to make the system better that could then be tested over the SAME time period and compared to the original results.
***SIDEBAR***
The first test showed Forex Avenger to be 83% profitable “out of the box”. Slight changes increased the profits to 279% over the same time period. A completely different exit strategy increased profits to a stunning 789% Profit!
Check out the full Forex Avenger Case Study
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So, if you’re tired of seeing other traders get better results trading the same system, I suggest practicing with Forex trading software. Not only will the software help you sharpen your trading skills in record time compared to DEMO trading, but it could help you identify more profitable ways of trading as well. Imagine what being a more skilled trader with a better system will do to your profits!
I’ve written a Special Report with the EXACT steps I took to increase profits by over 700%… and you can get it free!
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