Forex trading has become a popular investment option for many people around the world. The currency market is the largest financial market globally, with trillions of dollars exchanged every day. If you’re new to the world of forex trading, you may have heard of the term ‘str forex.’ In this article, we’ll explain what ‘str forex’ is and how to use it in your forex trading strategy.
What is ‘str forex’?
Str forex’ stands for ‘strategy tester forex.’ It is a tool that is included in the popular forex trading platform, MetaTrader 4 (MT4). The strategy tester allows traders to test their trading strategies on historical data before using them in live trading.
Using the strategy tester, traders can simulate various market conditions and see how their strategies would have performed in the past. This helps traders to identify potential problems and make adjustments to their strategies before implementing them in live trading.
How to use the strategy tester forex
Step 1: Open the strategy tester
To open the strategy tester, click on ‘View’ in the top menu bar of MetaTrader 4 and select ‘Strategy Tester.’
Step 2: Select the currency pair and time frame
In the strategy tester window, select the currency pair and time frame you want to test your strategy on. You can choose from a range of time frames, including 1-minute, 5-minute, 15-minute, 30-minute, 1-hour, 4-hour, daily, weekly, or monthly.
Step 3: Set up the testing parameters
In the ‘Settings’ tab of the strategy tester, you can set up the testing parameters, including the start and end date of the testing period, the modeling quality, the spread, and the commission. The modeling quality determines the accuracy of the historical data used in the testing. You can choose from four levels of modeling quality: ‘Every tick,’ ‘1 minute OHLC,’ ‘Open prices only,’ and ‘Control points.’
Step 4: Choose the trading strategy
In the ‘Expert Advisor’ tab of the strategy tester, you can choose the trading strategy you want to test. You can select an existing strategy from the dropdown menu or create your own using the MetaEditor.
Step 5: Start the testing
Once you have set up the testing parameters and selected the trading strategy, click on the ‘Start’ button to begin the testing. The strategy tester will simulate the trades according to your strategy and display the results in the ‘Results’ tab.
Step 6: Analyze the results
In the ‘Results’ tab of the strategy tester, you can analyze the results of the testing. You can see the total profit or loss, the number of trades, the average profit or loss per trade, the win rate, and other important metrics. You can also view a detailed report of each trade and see where your strategy performed well and where it needs improvement.
Conclusion
The strategy tester forex is a powerful tool that can help forex traders to improve their trading strategies and increase their chances of success. By simulating trades on historical data, traders can identify potential problems and make adjustments to their strategies before implementing them in live trading. Using the strategy tester can save traders time and money by helping them to avoid costly mistakes in live trading. If you’re new to forex trading, we recommend that you use the strategy tester to test your strategies before trading live.
