Both software programs help you speed up the manual backtesting process and make it easy to test almost any trading strategy in stocks, Forex, futures, cryptocurrencies, and more.<\/p>\n
After spending several months backtesting with NakedMarkets, I'm finally ready to give you a complete comparison of the two.<\/p>\n
I'll show you which ONE is better and why.\u00a0<\/strong><\/p>\n[toc]\n Is the software designed in a way that makes it intuitive and so I don't have to learn new syntax or processes?<\/p>\n Both software are patterned after MetaTrader, so I would say that they are very similar when it comes to ease of use.<\/strong><\/p>\n There are a couple of small differences however.<\/p>\n In version 5 of Forex Tester, they decided to move to a “ribbon” type menu at the top of the screen. If you've used Microsoft Office, you know what I mean.<\/p>\n This is what the menu looks like.<\/p>\n I'm not a fan of this.<\/p>\n It makes the menu bar bigger, and since each button is bigger, I have to flip through more menus to get to the functions I want to use.<\/p>\n In addition, the menus in Forex Tester 5 could be more useful. For example, the right-click menu on the charts don't have any options for trading.<\/p>\n Since there are already trading options on the primary ribbon toolbar, some might think that additional options on the right-click menu are redundant.<\/p>\n I disagree.<\/p>\n I feel that there should be some trading options on the right-click menu and the options for volume, grid, etc. should go on the Chart Settings<\/em> menu.<\/p>\n On the other hand, the NakedMarkets menus are very well thought out and streamlined.<\/p>\n The buttons are small, so they don't take up a lot of space, and there are only the buttons that I use most often.<\/p>\n Creating a minimalist menu is actually more difficult than you may think.\u00a0It's much easier to stuff it full of functions and let the users sort it out.<\/p>\n The right-click menu is much more practical than the one in Forex Tester.<\/strong><\/p>\n What I like about this menu is that there are actual buy and sell order options.<\/p>\n There are many other ways that NakedMarkets is easier to use than Forex Tester 5…too many to go into here.<\/p>\n But there is one more function that makes NakedMarkets better than Forex Tester in this category.<\/p>\n This is the Rules Manager function in NakedMarkets. It's actually brilliant, I would have never thought of this.<\/p>\n It allows you to build pieces of your trading strategy so you can automate them and speed up the backtesting process. More on this feature later in this article.<\/p>\n NakedMarkets also recently launched a TradingView-like interface for their charts. I don't use it, but some traders love it.<\/p>\n It's just a personal preference. I'm happy that there is an option though.<\/p>\n TradingView<\/a> has a great interface. Too bad it's not good for backtesting.<\/p>\n So even though Forex Tester 5 is easy to use, I have to give it a slightly lower score because of the ribbon menu and because the Rules in NakedMarkets really speed up the backtesting process.<\/p>\n Here are the scores for this category:<\/strong><\/p>\n Cost of ownership may seem like a straight forward calculation, but it's not.<\/p>\n Here's why…<\/p>\n There are 3 parts to backtesting software ownership:<\/p>\n Everyone understands the initial cost.<\/p>\n This is the amount that you pay to unlock the full version of the software.<\/p>\n As this is being written, the regular price for Forex Tester is $299. However, they have a lot of sales and you can get it for $149<\/a>.<\/p>\n On the other hand, NakedMarkets costs $269 up front, but you can get a $20 discount here<\/a>, for a total of $249.<\/p>\n Before you jump on Forex Tester though, you also have to take into account the data plan and add-ons.\u00a0<\/strong><\/p>\n The Forex Tester data plan costs $49.99 per month to get the latest updated data.<\/p>\n Now you could use the free plan, but there is a very limited amount of data available. So if you want to do any serious backtesting, you'll have to get the paid plan.<\/p>\n One thing you can do is order one month, download the data, then cancel your subscription. Then wait a few months, subscribe again for a month, then cancel.<\/p>\n Obviously, this solution is not ideal because you won't have the most updated data available. But it might be enough if you only backtest higher timeframes trading strategies.<\/p>\n The best solution is to purchase Forex Tester's lifetime data package so you never have to pay for data again. This package currently costs $539, on sale.<\/p>\n With NakedMarkets, you get updated historical data at no additional cost. So you only pay $249 (with the discount coupon<\/a>), with no additional costs.<\/p>\n So when you compare apples to apples, you save $290 by purchasing NakedMarkets.\u00a0\u00a0<\/strong><\/p>\n Remember, pricing can change, so be sure to double check the prices before buying.\u00a0<\/em><\/p>\n Both are reasonably priced, but you do save a decent amount of money with NakedMarkets, so I'm giving NakedMarkets a slightly higher score.<\/p>\n Here are the scores for this category:<\/strong><\/p>\n The next thing that I wanted to find out is how much each of the software packages can speed up the overall backtesting process.<\/p>\n Speed is relative. So what's the slowest method of manual backtesting?<\/p>\nEase of Use<\/h2>\n
![\"Forex](\"https:\/\/www.tradingheroes.com\/wp-content\/uploads\/ft-menu.jpg\")
<\/p>\n![\"Forex](\"https:\/\/www.tradingheroes.com\/wp-content\/uploads\/ft-right-click.jpg\")
<\/p>\n![\"NakedMarkets](\"https:\/\/www.tradingheroes.com\/wp-content\/uploads\/nm-menu.jpg\")
<\/p>\n![\"NakedMarkets](\"https:\/\/www.tradingheroes.com\/wp-content\/uploads\/nm-right-click-menu.jpg\")
<\/p>\n![\"NakedMarkets](\"https:\/\/www.tradingheroes.com\/wp-content\/uploads\/nakedmarkets-rule-manager.jpg\")
<\/p>\n\n
Total Cost of Ownership<\/h2>\n
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Speeds up Backtesting<\/h2>\n