A Forex Simulator is trading software that simulates market conditions and creates an impression of a live trading session. The usual aspects of trading, how to open, modify and close orders, remain the same.
The key features of the Forex simulator are as follows:
- Live simulation and market updates;
- Risk-free demo account trading;
- Inclusion of all trading features and functions;
- The ability to test any strategy;
While a degree and strong analytical skills can help you succeed in trading, they won't do much good without live practice.Some believe that mastery requires 10,000 hours of practice. Generating success in trading will likely require the same kind of due diligence.In either case, you don't want to lose money while getting the practice you need. Using Forex Simulation software on a demo account allows you to learn the ropes and avoid putting your hard earned money at risk.
How to know if it is the best Forex Simulator software for 2018There are two types of trading Simulation software.
The first uses a simple algorithm to mimic the larger market. The second is a sophisticated trading platform, offering a much more realistic market experience.While both can be helpful, the latter provides much greater value. Let's review the most important factors that go into selecting the right trading software.
A real market environmentHaving a live price feed is crucial for Forex Simulation software. This feature will provide you with real-time pricing data. Without this information, you will not be able to evaluate your operations effectively.A flexible deposit amountWhen you are ready to start practicing with a demo account, it is important to use a paper amount close to the amount you expect to use for live trading.Practicing trading with a demo account:
- Gives you the opportunity to learn more about the software platform;
- Give you the opportunity to develop and test strategies;
- Remember that any strategy you use must incorporate total losses, profits, and margin levels;
- Choose an advanced trading platform;
When you start trading with a demo account, it is important to work with a sufficiently advanced Forex Simulation software.If you look to only choose the most user-friendly platform, you may need to update later due to missing features. Also, keep in mind that if you don't want to do day trading, an advanced platform is not that vital. Whether you want minimalist software or a powerful tool, its trading simulator allows you to manually test your trading strategies based on historical data and analyze the results.fAn additional way to find a good Forex or CFD simulator is to look for a flexible backtesting feature.The MT4 platform by LVM Trade offers the best daily trading simulator that allows you to backtest manual strategies with historical data. This trading simulator can test various strategies in different time frames.Find popular strategies and try them out. You never know how effective these strategies will be until you try them.
A step-by-step guideWe'll start with the strategy tester first. This is our best CFD simulator for simulated CFD trading.Once you have installed the MT4 platform, you can start by pressing Ctrl + R and select the preferred time frame window and make sure you have enough historical data loaded. It is recommended to properly adjust your account balance to match your real account.Once completed, click the Start button.
To ensure the best compromise between speed and quality, apply these settings:Model: Open prices;Visual mode: Checked (to guarantee visual backtesting data);Period: Select a period that matches your trading strategy;Spread: Current.
Test tips:The slider right after the visual mode option allows you to speed up or slow down the visual testing process. If you use every selectable option during your tests, be aware that it can take a really long time to finish the backtesting.
Hopefully this guide of demo testing options can help you with getting started on your LVM Trade simulation account. For more information and education head over to our education section on lvmtrade.com.