Every trader at some stage of their trading development inevitably feels the need to create their own trading system.
This need is due to the fact that a trader needs to follow a set of rules that will be the basis of making decisions to open trading positions.
On the one hand, the rules of the trading system should limit the possible losses in the case of an incorrect price forecast. On the other hand, it helps to derive maximum benefits from the realisation of the price forecast.
Without such systematisation of a trade, it’s difficult to check its effectiveness.This is because trade statistics are random by their nature so there can be no question of the stability of the results.
There are different options of finding effective trading rules. While some traders form them empirically, others take these rules from foreign trading systems, and sometimes the entire trading system as a whole.
Checking the effectiveness of the trading system
No matter what option the trader chooses, the next step is to check the effectiveness of the trading system.
A demo account is often opened for transactions to be made according to the rules of the trading system for virtual money.
This option is acceptable, but has a significant drawback, which is time consuming. Trading is conducted in real time and, accordingly, in order to check the effectiveness of the trading system in an annual range of time, it is necessary to monitor the situation on the foreign exchange market and wait for the situation to be suitable for the rules of the trading system.
It would be more expedient to use the forex simulator, which allows a trader to check the performance of their trading system as soon as possible. It is better to spend the day on the test of the trading system in the forex simulator than a month, and sometimes a year in the case of trading on a demo account.
What is a trading simulator?
In its essence, the forex simulator is a history of the dynamics of quotations of currency pairs, which can be run from any interesting interval for testing.
The question “Why not just rewind the schedule back in a regular trading terminal and not look at how effective trading rules are for history?” may arise.
The answer lies in the indicators, which in the trading terminals will be displayed taking into account the entire price history, whereas in the forex simulator only a part before the specified date.
Simply put, in the forex simulator, the indicators will be drawn in real time, just like in real trading.
Currently, forex simulators are presented both as a separate software that is installed on a user’s computer, and as online services.
Tips on Choosing the Correct Simulator Software
For the correct choice of forex simulator, it is necessary to take into account the presence of the following components:
The depth of the history of quotations. The larger it is, the more time available for testing the trading system.
Availability of different timeframes. The trading system can show its effectiveness on the daily and minute charts in different ways, so there should be a choice.
Large selection of currency pairs. The price dynamics of each currency pair are specific. Therefore the trading system will often not be equally acceptable for trading them.
The ability to speed up the time of appearance of each new price bar. This speeds up testing.
A large number of technical analysis tools. The more of them, the more complex trading system can be tested.
Availability of statistics on transactions. This information is decisive, as it shows whether the trading system is effective.
When the choice in favour of the forex simulator is made, and the trading rules are determined, it remains only to begin testing the trading system. In the forex simulator, choose your favourite currency pair, a convenient time frame, set indicators of your trading system and start to make deals. Statistics will show whether your system is viable.
What is Trading Simulator?
As an example of a good forex simulator, you can use Trading Simulator. It is based on a real historical data and users get more than 10 years of data for 44 cross currencies.
The interface is simple and clean, the solution is absolutely web-based and available from any device. You feel as close to trading on real exchanges as possible and get high-quality data and instruments while reducing your risks to zero.
The ranking system is an integral part of Trading Simulator
Sometimes it’s hard to stay motivated and it might be difficult to evaluate your own progress. The spirit of competition makes us move forward, so the ranking system is an amazing instrument to solve these issues.
Basically, the ranking session is a competition between traders where everyone can participate in setting rank in the Global Ranking List. Participants can trade in any asset and invest any available funds.
The winner is the trader who finishes sessions with the best result and maximum profit. the list of winners forms the Global Ranking List. The system automatically generates information to set the list where you can see your own position and TOP traders.
It provides extended statistics reports where you can find all the details. Game — is the simplest way to learn complicated things. Trading with digital assets brings you immediately closer the moment you begin.
In addition, Trading Library access is a very useful tool included in Trading Simulator. It’s obvious to see that it doesn’t really matter if the exchange rates, such as Bitcoin, go up or down as you can definitely benefit and develop in the sphere of trading. They offer a free trial period and free registration so you can easily test the simulator and see the platform from inside.