Tester – why is it needed and what does it do?

Tester - why is it needed and what does it do?

Background

Long ago, in the 80s. The strategies were tested in a rather non-trivial way – they drew charts on the board and on them entry points, indicators, patterns. This is how great and not so great strategies were created.

It is clear that you need to have the skills of fundamental and technical analysis – otherwise it will be nonsense. In the 90s, scientific and technological progress made a huge step forward – modern software appeared. The world of financial speculation has also been affected by innovation. Metatrader, trading robots, online indicators and testers appeared. We will consider the latter in more detail.

How does the strategy tester work?

How does the strategy tester work?

The tester analyzes historical data, providing the most detailed information. Convenient, isn’t it? Everything is clear, simple and clear. However, there are pros and cons.

Pros:

  • Convenient – no need to draw by hand or print something in Excel, entered the program, opened the chart – and off you go.
  • No risk – no need to risk money on real accounts.
  • Saves time – unlike the same trading on a demo account, you can stop and skip trades.
  • Provides detailed statistics – analyzes historical data, that is, it has all the functions of a metatrader.
  • Any strategy or signal can be tested

Minuses:

  • Money. Most of the testers are paid. And those that are freely available are sometimes disappointing.
  • Relativity of results. But this is a problem with everything related to trading – the market does not always repeat itself and it certainly never behaves the way we want it to.
  • Limited functions of testers – either there are no Japanese candlesticks, or demo orders cannot be created, or the data is not saved.

AF tester

Everything + can be found in the author’s AF tester, which can test strategies for any asset. We tried to bring its mechanics as close as possible to the mechanics of the trading terminal. In addition, you don’t have to sit over it and figure out how to turn it on and how to view statistics – the interface is as friendly as possible.

In the AF tester, you can work with several timeframes and collect the statistics you need. Try new strategies, test Sniper X, develop your own trading systems – the AF-tester will become your reliable assistant.