How to paper trade with historical data

[bcfaigg]

Hi,
I have been reading a few books on trading (thinking of forex, but undecided). Basically, I want to paper trade for a while, so I can get a feel for things.

To start with, I just want to use a few simple indicators and learn to 'read the charts'.

I am trying to find some sort of charting software that allows me to paper trade with historical data. So for example, I would like to obtain e.g. hourly data for a given currency going back say a year. I would like to be able to load this into the charting software, configure the chart with some suitable indicators, and then step forward candle by candle, paper trading when I see a suitable entry point.

I can see there are lots of really elaborate software packages out there that allow for e.g. backtesting of mechanical systems - but these seem really complicated to configure. I may well have to learn to use them at some point, but to start with, I was hoping to find something simpler.

Any suggestions (preferably cheap or free :cheesy🙂

Cheers
Bcfaigg

Anyw

 

[Jason Rogers]

Hi,
I have been reading a few books on trading (thinking of forex, but undecided). Basically, I want to paper trade for a while, so I can get a feel for things.

To start with, I just want to use a few simple indicators and learn to 'read the charts'.

I am trying to find some sort of charting software that allows me to paper trade with historical data. So for example, I would like to obtain e.g. hourly data for a given currency going back say a year. I would like to be able to load this into the charting software, configure the chart with some suitable indicators, and then step forward candle by candle, paper trading when I see a suitable entry point.

I can see there are lots of really elaborate software packages out there that allow for e.g. backtesting of mechanical systems - but these seem really complicated to configure. I may well have to learn to use them at some point, but to start with, I was hoping to find something simpler.

Any suggestions (preferably cheap or free :cheesy🙂

Cheers
Bcfaigg

Anyw

Hi Bcfaigg,

There's a feature on the NinjaTrader platform called Market Replay that lets you trade historical data. This video has instructions on how to use it: Market-Replay

Welcome to the forum 🙂

Jason

 

[resistance]

Paper trade and this market replay can be helpful but it will not include the emotions that would be present when we are trading at that particular time specially the news timings.

 

[PollyM]

bcfaigg

You are right in practicing process, as I've mentioned before think Karate Kid - original or more recent depending on your generation!

It's easy said, but you can start dealing with emotions by focusing purely on method, so to gain a 'knowing' that your chosen system will bear fruit over time. Once you 'know' something your emotional output changes and has less 'negative' sway on your actions.

Also think early on that there's little point using indicators which over time will at best scrape a return. Also, most indicators will need a separate stop loss mechanism which further muddies the waters when trying weigh up if a trading system actually works (both in theory and practice). Have a look at indetrader which runs through a lot of this. Of all the 'standard' indicators that are usually pre-programmed in software the RSI does stand out, and see if you can arrive at some simple stop loss mechanism for it.

 

[Jason Rogers]

bcfaigg

You are right in practicing process, as I've mentioned before think Karate Kid - original or more recent depending on your generation!

It's easy said, but you can start dealing with emotions by focusing purely on method, so to gain a 'knowing' that your chosen system will bear fruit over time. Once you 'know' something your emotional output changes and has less 'negative' sway on your actions.

Also think early on that there's little point using indicators which over time will at best scrape a return. Also, most indicators will need a separate stop loss mechanism which further muddies the waters when trying weigh up if a trading system actually works (both in theory and practice). Have a look at indetrader which runs through a lot of this. Of all the 'standard' indicators that are usually pre-programmed in software the RSI does stand out, and see if you can arrive at some simple stop loss mechanism for it.

Polly,

You make a great point about knowledge and confidence in your method being a good way to keep emotions in check.

Though on the flip side, I'm reminded of one of my all-time favorite quotes by that great sage Mike Tyson: "Everybody has a plan until they get punched in the face."

Jason

 

[PollyM]

'Tis true, although the Mike Tyson we knew was a fighter, not a lover.

 

[Rambo35]

Hi Bcfaigg,

There's a feature on the NinjaTrader platform called Market Replay that lets you trade historical data. This video has instructions on how to use it: Market-Replay

Welcome to the forum 🙂

Jason

I think NinjaTrader is great for those sort of projects. A bit hard for a newbies to learn their way around, but worth the time.