Benefits of Simulated Forex Trading

Simulated Forex Trading helps us to become better traders and protects us from the

bad habits of trading. It is the best most effective method of practise trading without

any risks. On this page, we will study how to achieve a live market experience and find

out the advantages of using a forex trading simulator software.

To determine whether forex trading is suitable for you or not, you have to be involved in

the market. With the help of real-time historical data, traders can decrease their learning

difficulties and easily determine whether forex trading is for them or not. Simulated

forex trading does not raise a few issues. Sometimes, time and positive results on a

demo account are not necessary will show the same results in a live trading

environment. This thing forces people to think about the validity of simulated trading.

You will get complete details about simulated forex trading on this page which help you

determine if simulated trading is really beneficial or not. Here we also tell you about

some best forex trading simulators and how they perform well in the market.

What is Simulated Forex Trading?A forex trading simulator is a type of software that helps you to examine your strategy

offline by using historical data from the market. You can test your new trading strategies

on this software before performing them on live trading. This thing helps you determine

which strategy will work for you and which one does not. Due to this step, you can

reduce your losses.

A demo account is the best example of a forex trading simulator. Most of the forex

brokers provide a similar environment of live trading on a demo account. On a demo

account, you can open and close trade and revive orders in a similar way to perform

trade on a live trading account.

Advantages of using a forex trading simulator are:

Create an environment similar to a live trading environment.

Provide a platform to backtest and forward testing of trading strategies.

Examine new trading ideas to test whether they work on live trading or not.

A risk-free trading account consists of all the trading features and functionalities of live

trading.

Forex trading simulators help you to test your trading strategies which can play an

important role in reducing your losses. It allows you to improve your trading skills and

strategies. Some top forex brokers who provide a demo account feature with their live

trading accounts are 101investing, TradeATF.

Key Benefits of Simulated Forex TradingSimulated forex trading provides an exact similar environment as a live trading session

only risk-free. It allows you to test strategies you create with the help of historical data,

whether they work on live trading. Check here some key benefits of simulated forex

trading.

A risk-free environment is the major benefit of simulated forex trading. A forex

simulator provides you with a risk-free environment on a demo account where you trade

with virtual money. Here you do not invest your real money in trade, and you only use

virtual money for trading.

Live simulated quotes: All price quotes displayed on an online forex simulator fluctuate

similarly to live trading sessions.

Adjustable timing: Forex simulator allows you to adjust the speed of the forex market to

gain more trade, more candles and allow you to do more practice in a short time period.

But during a live trading session, you need to wait for the right time to perform trade.

Forex trading simulators help us see one day’s worth of data in a minute, allowing us to

do more practice.

Trading Tools: All the trading tools which are available on live trading platforms are also

provided on a forex trading simulator. You can use all trading tools on a demo account

for analysing the market. This allows you to become friendly with these tools as well as

with the multiple features of live trading platforms.

Examine your new trading strategies: You can test various trading strategies and can

pick one which is best for live trading. Select strategies according to your trading style

and experience. Must test your strategy on a demo account before applying on the live

trading session.

Key factors for selecting best Forex Trading SimulatorsThere are several forex trading simulators available in the market. But before selecting

them, you need to keep some factors in your mind to fulfil the trading style

requirements.

Live Pricing FeedIt is essential to check that your simulator consists of a real market environment that

shows live price data. Without live price data, you do not get the opportunity to test your

trading strategies efficiently. Live pricing sustainably copies the spread which means

while you apply your strategy on a simulator, it uses the actual spread of the market. It

is an important feature that helps you to learn how to gain profits from market spreads.

Consisting on-time price data helps you to check that your backtested results are

correct or not. Through this factor, you identify whether you can trust the simulated

historical data available in the software or not.

Forex Trading Simulator Historical DataYou may require accurate historical forex data that goes several months back. Not

having sufficient historical price data to simulate the presentation of your trading

strategy will move towards unrealistic backtested results. The best forex simulators

always consist of historical price data. It may also provide you with a browsing feature

through which you can borrow historical quote data of your specific currency pair. Apart

from the end of the day quote data, the database may also consist of intraday quotes. It

doesn’t matter which trading style you are following either it is day trading or swing

trading. The best forex trading simulator will help you in any condition.

The historical price data should be arranged in a clear manner so that you can easily

determine the high, low, close and opening price of the specific currency pair and

selected time frame. For example, If your trading strategy is dependent upon volume,

then you may also receive the tick volume information. It is necessary to have control of

the volume data.

Flexible Virtual Money AccountAs per the research, we see that most of the traders do not treat virtual funds as real

funds. Always start with the amount which you need to invest in live trading. There is no

worth in using more money on a demo account which you are not going to invest

during

the live trading. If you practice with a high amount, it is not worth practising on a demo

account. Through this, you only enhance your expectation which is not a part of a

realistic risk management strategy.

Suppose you use a similar amount of money that you are going to use at the time of live

trading. Through this method, you do not face problems while you transition to live

trading. While you begin trading on a demo account, you may not be required to use

your real funds. Must select a free forex trading simulator that consists of minimum

trading tools and trading features.

Select a powerful trading platform for simulated trading.It is necessary to determine whether the trading platform which you are using while daily

trading is having a significant impact on your trading performance or not. Investors

spend multiple hours on their trading platform every day if they follow a day of trading

and scalping. So trading platforms may also play an important role in live trading. Once

you have done with forex simulated trading, it’s necessary to select the right trading

platform which you are eager to use while doing live trading.

One of the most famous trading platforms between retail traders is the MetaTrader 4

platform. It generally consists of all the essential features which you require while doing

daily trading, such as charting tools, flexibility, a user-friendly interface, a wide range of

market orders, and a large & supportive online trading.

MetaTrader 4 also provides a simulated trading option to their users. You can do it

manually or automated via its built-in strategy checker. Learn how to use the MT 4

trading platform to simulate a live trading environment through historical data from

here.

Manually Backtest of strategies through MetaTrader 4MetaTrader 4 consists of various features that support and enhance your trading

results. Manually backtest is one of those features that help you to test your strategy

and replicate a live market environment by historical price data.

Normally open your MT 4 trading platform and pick your specific currency pair and

timeframe. Now roll back your chart to collect some historical data. After this, press the

F12 button to move your chart bar by bar to the right side.

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