How Good Is Your Forex Simulation Software?
Facebook Twitter google+ RSS Feed

How Good Is Your Forex Simulation Software?

By SiliconIndia   |   Monday, 01 October 2018, 12:43 Hrs
29
cmt right
27
Comment Right
47
cmt right
8
cmt right
Printer Print Email Email


When starting out in Forex trading, the smart move is to try your hand on a simulation platform to put theory into practice. This is where you can really see the vitality of the forex market, deploy your strategies and generally have a feel of the world of forex trading.



How Good Is Your Forex Simulation Software?



Thanks to advances in tech of today’s trading platforms, beginners in forex trading have far more realistic simulation software that was available 2-5 years ago. Aspects of artificial intelligence have been integrated into advanced simulation software to make smarter analysis and output, guiding the user to smarter decisions.



What makes a good forex simulation software?



The basic premise of a forex simulator is to let the user practice trading without risking actual money. As such any forex simulation software must allow the user to open, modify and close trades. A competent forex simulator should have these basic attributes as well;




  • Free demo account for trading


  • Trading features and functions


  • Strategy testing


  • Market updates



Forex simulation software should present realistic scenarios closest possible to the real thing. The reality is that without good exposure and practice, your learning progress could be seriously hampered or flawed, leading to loss of money.



It is crucial to practice as much as you can on a forex simulator before placing your hard-earned money at risk. While good analytical skills count a lot, having the best tools in the market to aid you gives a big advantage.



There are different forex simulation software in the market, perhaps hundreds of them. But there are marked differences in their capacities;




  • There is simple simulation software that is good for very green beginners. These mimic the market using complicated algorithms but which are in real life very limited in the scenarios they can stage.


  • There is sophisticated simulation software that is based on real-life trading platforms like MetaTrader4. These simulators only lack live currency trading but have all the other trading features.



Real-time data



A forex simulation software should show real-time data including real-time price data. This is the only way to enable you to execute your trading strategy and gauge their effectiveness in the real world where variables are out of your control. This is the only way of telling how good you are getting at trading.



Deposit amounts



Some simulation software has a fixed deposit amount that you start with, and in most cases cannot be topped up. But what would work better is a simulator that is flexible on deposit amounts. This will allow you to play around with numbers and see what deposit works well for what scenario. This will perfect your strategies in profit-taking, stop-losses and margin levels. It will also give you the confidence when you start trading with real money because the transition does not seem drastic.



How to pick a forex simulation software



Many people will start out by working with minimalist platforms with limited features. While these are good for understanding the basics, they are very limited capabilities. The learning progress on these platforms would be limited if you want to get into day trading.



The better approach to getting into day trading would be to go for a forex simulation software that is as advanced as possible. While it may take present a steeper learning curve, it tests your theories sufficiently letting you know what works and what doesn’t in a shorter learning period.



A simulation platform should have a flexible backtesting feature. This allows you to test your trading theories on historical data. You can snapshot different period in the past and test different theories during these durations. Using an advanced forex simulation software is like learning to swim in the deep end; you become very good fast or drown.



Some other desirable features of a good simulation software include;



1. Types of trades – Can you trade forex as well as CFD on the platform? A versatile platform saves you the cost and hassle of setting up a separate platform.



2. Is it cross-device? - The smartphone has become an integral tool in business. A good forex simulation software should be accessible on different devices on the 3 major operating systems; Windows, Android, and iOS.



3. User interface - How friendly is the user interface? Is it possible to retrieve the data needed from the GUI? A good GUI makes it easier to make trades where seconds can make a huge difference.



4. Types of orders available - The trading platform should enable all types of orders in the market including Limit Entry Order, Stop Entry Order, Stop Loss Order, Trailing Stop, Good 'Till Cancelled (GTC), and Good for the Day (GFD), and One-Cancels-the-Other (OCO) orders.



5. Security – The security of the platform is very crucial to safeguard your money against hackers.



An advanced forex simulation software is the best learning platform if you want to learn about forex fast and become competent enough to start making profits like a pro.



Read more news:



OPPO to set up its first India R&D centre in Hyderabad



Top 3 Best Snapchat Spy App 2018: Inside Review & Comparison



Experts on SiliconIndia
Santhosh  K
Sr. Soft. Engg.
Oracle India
Nehal Vyas
Sr. Team Lead
Cyberoam Tech.
Rani Malli
Sr. Director
Philips
Sr. Executive
ISB
Vijay Balkrishna Konduskar
Business Consultant
Imans Web Tech
Dr L P  Sharma
Technical Director
NIC
Reena Khanna
Founder
Solitaireworld
Dellas  Asse
sys-network admin
Computer Station
Write your comment now
Submit Reset
SPOTLIGHT