This is the largest financial market around transacting an average $5.5 trillion per day. That’s more than $10 million plus every second. And even though more than 52% of this transaction amount is between banks and other financial institutions, the rest is simply made up of individual investors or traders. That’s about $5 million per second with some winning and some losing out. You apparently must be thinking where forex tester software applications come in the picture. And that’s exactly what you’ll find out here. Read on.
What is forex tester?
Considering that you’re a beginner, there’s one simple golden rule you simply have to keep in mind when it comes to foreign exchange trading. You need to have a proper comprehensive concept about everything to make sure that your investment moves in the right direction. And if you haven’t heard of back-testing yet then you need to hear and understand what it is all about.
Forex tester software applications are used for back-testing purposes. Back-testing is using past market data and charts to see whether a strategy or a customized indicator or technical tool functions properly.
Forex tester 2,a 2nd generation update over the previous one allows you to plot a trading strategy or technical tool analysis on past market data. These software applications come with direct links to nearly 15 years of market data on multiple currency pairs.
The idea behind these applications is simple. If the end-result of that strategy or tool is reflected by following market charts, which too is a past chart – then that strategy or tool is worth a try on the market.
The thing is, professionals think and analyze instead of jumping to conclusions or rather investments. This foreign exchange market is profitable due to its high volatility. But it’s this same volatility which can turn an investment on its head, that is, into a lost venture.
Further, this is an international market which deals with numerous national currencies. So, the number of variables and factors which determine this market’s futures are more often than not too many to be accounted conclusively. So, without properly analyzing these variables and factors, you are simply playing roulette with your own investment.
Forex tester 2 is the most popular back-testing software around for professional traders and brokers alike. They double-check on their strategies and custom programmed technical tools or indicators to see whether they function properly in these situations. When the back-testing software confirms that a strategy or tool has relevantly provided an end-result which mirrors market data, only then do traders apply it in the real-time market.
Is forex tester really that necessary?
To understand this conundrum, all you have to do is put yourself in the shoes of a foreign exchange professional. Consider that the pro is trading with USD EUR. Given that every single currency pair has their own set of major factors and requisite strategies - he wishes to invest in it.
Coming up with a new technical tool or indicator, he finds out that this pair may have an 8% appreciation of value over the upcoming week. Now, every technical tool or indicator is based on one or more theories. Instead of applying it straight to the market, it is at this juncture that he uses his forex tester 2 tool to see whether the theory applies to actual market data.
Now, considering that the tool does not give conclusive results, this means that the tool is not worth a proper forecast for investment. So that 8% gain forecast it showed on USD EUR is inaccurate.
A conclusion for you would be – forex tester 2 rus and other similar back-testing software applications are a final sound check before the actual show. This is something which only the best professionals use. And if you want to be a pro in foreign exchange, you simply must know how to use this software application.
Using Forex Tester for Beginners
If you are a beginner, then there’s a lot of foreign exchange trading you won’t get right from the word Go. You have to start first with a proper knowledge of how this market works before going in for actual trading.
After understanding the basics, you can and should go for trading with demo accounts first to get a feel of actual trading. Learning fundamental and graphical analysis comes first followed by technical analysis with proper tools and setup.
It is a fact that this market moves or rather behaves in graphical patterns. And these patterns more often than not fall in line to a certain extent. You need to understand each of these patterns of price movement, technically known as price-action if you want a better view of the future trends which this market will show.
It is only after this that using back-testing software like forex tester comes into the purview. It is evident that by this time you’re not a mere beginner in foreign exchange anymore. You’re well on your way to becoming a professional trader. And being a professional, back-testing with forex tester is compulsory for perfecting analysis and trading strategies.
For Your Information
Now, this is something which comes last, but it’s definitely not the least. Even though you’re a beginner, you must know that downloading forex tester 2 or any other software is not that difficult with torrents and cracks easily available online. But, the thing is, a back-testing software requires historical data and facts. And they don’t come pre-loaded with historical charts.
These software applications gather the data directly from market servers. And there’s no way that a cracked or torrent version will be able to sync to these servers thus giving off inaccurate predictions. So, it is recommended that you always go for an original and paid version of forex tester 2. Why?
Because it will make your market analysis more impeccable and increase your chances of making guaranteed profits. So, go for proper software to get the best results. This too, for you, is an investment. Perfecting market strategies is the way forward, and that way is where proper profit lies. Go for it!
Learn. Invest. Prosper.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.