ForexTester

[raa]

Hi, does anyone use ForexTester? I think Capsmart is using one, are you, Caps? Can you share your experience? I want to give it a try (trial version is available), as a substitute to putting live trades with new methods or some controversial entries or wasting time again at demo account waiting for setups and see how it develops. So if someone is using it - please share. Quick how to start guide would also be appreciated.

Thanks

[Yick]

Raa

You don't like the MT4 Strategy Tester ?

[raa]

Strategy tester is good really only to test EA, not manual systems. You can't simulate really any positions, SL, TP etc, switch time frames, etc.

[capsmart]

Forex tester is a nice tool but I do not use it very often.
The logic is:
You first download 1 min data from a server suggested by the author. Then you import this data to forex tester.
You create your "template" with indicators and start trading. You can accelerate the movement or slow it down.
You enter trades with stop loss, take profit etc. I do not remember if you can partially close a trade, but I think you cannot do this, so you have to open 2 separate lots if you want to close one and let the other run. You can move stop loss etc. You adjust the spread according to your broker but of course it could not know if your broker increases the spread around news time.
The basic indicators are present (like bollinger, macd, ema) you can draw trendlines and something is a relatively recent addition is that you can watch different time frames at the same moment. So you can have eur/usd daily, 4h and 1h.
You can see a report with an equity curve.
You can create custom indicators but it is not so easy and you cannot use indicators from MT4. If you can program MT4 I guess that you could also learn to program forex tester.
Basically it is very similar to MT4 and once you spend a couple of hours you will be able to use it. I think it is the next best thing to live market conditions, especially if you want to use it to learn a manual system that does not use custom indicators.

[sfx1971]

I echo what caps said. Just be aware that the demo version is limited to 30 days worth of data, that is you can only back test 30 days worth - fine if you are scalping the one minute charts but little use for 4 hour chart traders like me. The ability to save projects is disabled for the demo version too. Last time I looked at it you couldn't scale out of positions, you had to open multiple positions instead. The website has some excellent video turorials to get you started and in my opinion is definitely worth a look.

[capsmart]

I agree if you are the back testing guy it is really worth the price.
And support is very good.
I wanted to have it installed on 2 computers and they gave me a second serial for free and when I had to format my computer and reinstall the forex tester again they provided with a new serial. They ameliorate the program and send you emails for free updates.

[Simon]

Hi guys,

Thanks Raa for asking the question.

Yick - I have MASSIVE problems with MT4 back tester. I looked at ForexTester before but could not figure out how to backtest EAs on it.

I have a top of the range PC, built by Intel (I work with them as a partner). It has the best available CPU, RAM, graphics card - you name it, it has it! It gets maximum points on the Windows Experience Index. Basically, unless you overclock, it is the fastest and best PC you will ever see that isn't a super computer!

MT4 only uses one core - this is a joke as I'm sure you will appreciate. Optimizing an EA on this PC with 20 parameters over the last 5 years will take between 8 MONTHS and a YEAR. I have to disagree with you, MT4 is a JOKE when it comes to backtesting.

Sadly, porting to TradeStation is extremely expensive, but is the only way right now (MT5 claims to be multi-threaded but I think it will be nearly as slow). It will also take years before MT5 is adopted - too many people use MT4 and there is really no demand for it.

I'm looking at creating a stand-alone automated strategy tester for MT4 EAs - IMHO it is the only way.

Apologies for the rant but this only further demonstrates that MT4 is built for brokers and not end users.

As a manual system, ForexTester may have some merit - however, you might want to check this on Forex Factory before parting with any cash (it's free) - http://cdn.forexfactory.com/attachme...7&d=1197664770

[raa]

Simon, I have also noticed that MT4 is very very slow when it comes to have many pairs with lots of indicators opened, explanation of using only one core is solid, that explains why it is so slow. Mind you, it is a VERY OLD platform. When I was introduced first to forex in 2005-2006 it was already there as a mature platform.

PS Have you heard of very profitable strategy built for jForex that is used by Dukascopy?

[Simon]

Hi Raa,

Non-multi threaded applications are fine as long as they aren't hungry for everything you can throw at them.

To be fair to MT4, it is doing a LOT of work when backtesting lots of variables - it's the equivalent of running 3D rendering or processing huge equations and different permutations thereof, but it's not an excuse ultimately. The damn platform updates every month or so, I can't believe that it would be an issue to upgrade the back-tester or other functionality in this day and age...

Also, what is this 90% accuracy nonsense - forgot that in my previous rant! Also forgot that there is two weeks of missing data on MT4 history for March this year - STILL!

Regarding jForex, no not aware of any strategies - but I do believe that this would be well worth looking into and I am 100% sure that the big boys are taking advantage of this. It makes sense right? Java is VERY powerful, lightweight and adaptable.

Fap Turbo Evolution was a JForex system but I have a tendency to think that they either rushed it or it was a 3rd party product that they bought/partnered with and it is a shame that no-one has looked into this further.

If you know of anything, please let me know...