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Tips for Using A Forex Tester

Category: Forex

If you want to get into Forex trading, you may have heard about free demo accounts and how they can be a huge help to new traders.  A free demo account can allow you to test some forex trading strategies, but it’s not always a complete or realistic experience.  If you want a better way to practice, you should use actual Forex tester software.

An Overview of Forex Testers:

The biggest difference between a Forex tester and a demo account is that a demo account uses fake scenarios.  A Forex tester, on the other hand, just uses old scenarios.  The tester program uses historical data so that you can make mock trades using real, but obsolete, information.

Demo accounts can give you some basic knowledge about how Forex trading is done.  You can pretend to buy and sell and set stop losses.  However, it’s basically like playing an unrealistic game.  A Forex tester (simulator) is much more realistic.  It’s somewhat like the difference between playing a video game about flying a plain versus using an actual realistic flight simulator.

Things You Can Learn From A Forex Tester:

There are many things you can learn from a Forex tester.  Each one offers a variety of options, including momentum indicators.  Oscillators, foreign currencies and moving averages are just a few more of the things you could learn from a Forex simulator.  You can test all of the trading strategies that you want and make simulated trades in many different currencies and commodities.  So, it’s the ultimate way to practice Forex trading.

Testing Quickly:

One of the advantages of a Forex simulator is that you can test strategies quickly.  You can test in real time or you can even speed the process up.  The tests that you run could take a few days or a few months.  You can control the process based on how comfortable you are and what you want to do.  By testing a year’s worth of trade strategies in days or weeks, you can get a lot of Forex trading experience.

Using A Simulator With A Trading Robot:

Many Forex traders invest in trading robots.  Those robots often come with money-back guarantees that only last for a certain amount of time.  A Forex simulator program will let you test your trading robot in many different scenarios in a very short time.  Then you can be sure that you are happy with the robot before your guarantee expires.

The high speed of a Forex tester is wonderful for testing both trading robots and trade strategies, in general.  If you develop trade system theories of your own or want to try existing ones, you can.  You don’t need to worry about losing actual money, since it’s just a practice environment.

There are definitely many great things about Forex tester programs.  They offer a lot of options that simply aren’t offered by simplified demo programs at all.  Therefore, if you want to get into seriously trading in Forex on a regular basis, a tester program is definitely the way to go.

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