The best trading software is essential should you wish to trade FOREX with success. You need a nice FOREX charting software to perform your market analysis, and also a convenient trading terminal to place your orders. Trading is merely not possible without the tools used to analyze the market and open/close positions. And this is not the complete range of FOREX software applications you should have at your disposal, there is certainly a lot more…
In case you have a well working trading system and work with it daily successfully, you can perform well using just charting software and a trading terminal, or a package that includes both. But if you want to test out different strategies, or if you have recently began to trade FOREX and desire to create your very own FX trading system from the scratch, you have to have a good strategy testing software package. Have you ever attempted to test strategies using charts along with a sheet of paper you understand how time-costly it can be, and how many errors you can make during back-testing.
Well, let’s talk about charting software programs. For charting, you can use any software that provides you with historical and real-time bar and japanese candle stick charts, and lets you sketch trend lines, channels, levels and various other graphic objects required to analyze the market. You must be able to work with all well-known technical indicators and studies in your charting software, or you won’t be able to utilize this software program to make trading decisions. For this specific purpose you can utilize Meta Trader, Meta Stock and Trade Station software. All these 3 products are probably not the only ones available for traders, there are many more great choices actually, and I’ve tried a good number of of those; but I did not mention other products just because I excessively used only these 3, and the majority of my fellow traders also used them with a great success.
Although Meta Stock and Trade Station are extremely powerful tools which can be expanded with various plug-ins, I like to work with Meta Trader since it combines every little thing I require in a single easy package, and because it’s totally free. Meta Trader is supported by virtually all FOREX brokers, and if it isn’t, it will likely be supported soon; Meta Trader’s charting is exceptionally good, and its integrated trading terminal is incredibly handy. You simply set it up on your own computer and this is really everything you need to analyze the market and trade.
Now let’s discuss the most important aspect of your trading success – trading strategy back-testing. As soon as you come up with an idea and transform it into a trading system, you have to make sure the system works well before advancing towards the real world. For those who have some computer programming knowledge and can also formalize your trading strategy, you may use Meta Trader’s strategy tester to back-test it. If you’re making trading decisions based upon complicated patterns that only your brain recognizes, you have to have a tool that would allow you to test out your strategies in the manual mode, by displaying you live charts, and letting you to open and close positions by hand.
For this purpose, I personally use Trading Strategy Tester for FOREX. This software product features great charting and lets you manually test out your strategies in a really easy way. When you begin emulation, all the picked currency pairs are displayed as live charts where you may sketch your trend lines, channels, add technical indicators and studies. You press the Run button, and simulation gets going. From this level, you should notice how the last candlestick is breathing, and new candlesticks show up on the computer screen. There isn’t a difference between the real real-time trading and the emulation of real-time trading in Trading Strategy Tester for FOREX apart from the simulation is performed using historical FOREX data. You wait for a trading signal, and then open a position or place a delayed order. Then you certainly don’t need to stay up for many hours or days for the position to close, you simply fast-forward your chart to the point where it closes, and the program automatically calculates profit and loss for you.
After this you fast-forward to quickly reach the next spot in which you would like to open your next position, open it and fast-forward over again. You repeat this procedure till you reach the place on the chart in which you would like to finish testing. When simulation ends, all trading statistics and reports become accessible, and you understand well this statistics in vitally important since based upon this statistics you decide whether this particular trading system suites you or not.
For those who are keen on Trading Strategy Tester for FOREX, I include a download link below this post. In order to summarize what I’ve just talked about, I provide you with a list of the best trading software programs.