If you use the Forex Tester to simulate trading, make sure you are doing it realistically and adjust your equity and position sizing as you place your trades.
One of the greatest errors traders make with a simulator is to ignore their position sizing as they place their simulated trades and to simply focus on their strategy. The conclusions you draw from testing in this way can be completely wrong – making you think a success trading plan won’t work, or making you think that a flawed plan is going to pan out for you.
The Calculator makes it easy to test accurately. Here’s how…
The main ingredient for the calculation of accurate position sizing is determining what the pip value was at the time you are testing. To get this information you must begin by telling the Calculator to use historic prices rather than live prices.
Step 1) Download this small DLL program
Step 2) Extract the FST_FT_Link zip file
After you download the file make sure to extract it; work with the extracted files only. Delete the zip source file.
Step 3) Go into the Forex Tester and install the bridge:
- In Forex Tester, go to the File menu and choose Install … > Install new strategy.
- Locate FSTlink.dll on your hard drive and click Install
- From the Tools menu select Strategy List.
- Check √ on FTS Link and then double-click it.
- Create an account number of your choosing. Close dialog.
- Click Enable Strategy execution on.
Step 4) Set up the Calculator to use the Tester:
- In the Calculator, go to the Setup tab
- Create a new account with whatever descriptive name you like.
- Use the same account number you used in the Tester properties dialog.
- Choose equity source: Forex Tester
- Enter any equity to begin – it will correct when you start your test.
- Currency is always USD.