Backtesting software provides a safety net for traders before diving into unpredictable markets. At its core, this tool allows traders to rehearse strategies using historical data to perfect their trading journals. As markets continue their unpredictable dance, the right backtesting tool can determine whether you sail to profits or stumble into losses.
Backtesting software facilitates a trial run of your trading ideas. It lets you see how strategies might have performed so you can determine their viability before putting real money on the line. You get insights into strengths, weaknesses, and potential risks by testing techniques using historical data.
Some of the best backtesting tools are designed for beginners, while others suit more advanced traders. The key is finding an option aligned with your trading skills and goals. With the right backtesting solution, you can optimize strategies, gain confidence in your methods, and ultimately make better trading decisions. On that note, here are the best backtesting software.
The Best Backtesting Software on The Market
When it comes to backtesting trading strategies, you have options. The top software lets you evaluate how effective your ideas would have been historically so you can refine and improve them.
- Trade Ideas: Best algorithm-based trading software. It scans the market in real-time and alerts you to opportunities that match your criteria.
- TrendSpider. This tool focuses on technical analysis, giving you 70+ indicators to test strategies. See how signals would have worked out and get a sense of reliability.
- For long-term investors, Stock Rover is ideal. Test how portfolios would have done over months or years based on fundamentals like value, growth, and quality factors.
- If screening for promising stocks is your goal Finviz, has you covered. Backtest how effective your criteria would have been at finding winners to improve your selection process.
- Finally, for trading ideas based on community input, TradingView is the platform to use. See how other traders’ strategies would have fared so you can choose ones that match your style.
- MetaStock is a popular choice for advanced traders looking to backtest complex strategies. With over 125 technical indicators and line studies, you can analyze the performance of indicators.
- Tickeron leverages AI to provide automated insights into your trading strategies. Its backtesting tool evaluates how well your ideas would have performed in the past so you can fine-tune your approach before risking real money.
Trade Ideas is an advanced stock scanning tool offering in-depth market analysis. It combines tried-and-tested stock scanning methods with artificial intelligence to give you the best insights.
Holly AI is Trade Ideas’ proprietary artificial intelligence engine. It continuously scans the market to find the best trading opportunities based on your personal trading criteria. Holly can alert you to stocks that are:
With advanced scanner functionality, a strong educational program, and a moderated live chat room, Trade Ideas offers everything you need to make better intra-day trades. You’ll have access to:
- Pre-built stock scans to search for stocks based on criteria like volume, price, technical indicators, and more.
- The Oddsmaker objectively measures the likelihood of a stock’s next price move.
- Brokerage Plus allows you to trade directly from the Trade Ideas platform.
- TI University is a resource for learning trading strategies and how to utilize the Trade Ideas platform best.
There are just two subscription plans to choose from. Both are offered as a monthly or annual subscription:
- Standard Plan ($84/month, $999/year)
- Trade Ideas Premium ($167/month, $1,999/year)
TrendSpider offers three subscription tiers to suit any trader’s needs. The more advanced the plan, the more tools you’ll have access to for analyzing the markets.
The Premium plan is great for new traders looking to test the waters. For just $39/month, you’ll get access to TrendSpider’s core features, like automated trendlines, heatmaps, and watchlists. This plan is perfect if you’re still learning the ropes and want an easy way to spot trading opportunities.
The Elite subscription unlocks TrendSpider’s backtesting capabilities, allowing you to see how well your trading strategies would have performed in the past. At $79/month, the Elite plan is suited for experienced traders who want to optimize their strategies before putting real money on the line. Additional features like options flow data and more advanced charting tools are included with this mid-tier option.
For professional traders, the Advanced plan is the way to go. For $129/month, you can access all of TrendSpider’s features, including their machine-learning algorithm that detects complex patterns and provides dynamic price alerts. The Advanced subscription also includes more metrics and indicators to help you make data-driven decisions. This top-tier plan is ideal if you’re a full-time trader looking for a powerful platform to gain an edge.
Whatever your experience level, TrendSpider has a plan to meet your needs. Their cutting-edge technology and automation tools can help traders of all skills uncover new market opportunities.
With Stock Rover, you have access to a robust set of tools for researching and analyzing stocks. Their free plan gives you a taste of what they offer, but to take full advantage of their platform, you’ll want to upgrade to one of their paid subscriptions.
For only $7.99/month, the Essentials plan provides real-time data for over 8,000 US stocks, 65+ stock screeners, 10+ years of historical data, and paper trading. The Premium plan ($17.99/month) adds features like options data, short interest info, and international stock coverage. Their top-tier Premium Plus plan ($27/month) gives you everything in the Premium plan, plus portfolio analytics, insider trading alerts, and spreadsheets.
Any of these plans provide abundant data and metrics to help you make well-informed investing decisions. You can screen for stocks based on growth, value, dividends, quality, etc. Compare companies’ side by side to evaluate which is the better buy. Set up custom watchlists to monitor stocks on your radar.
With an easy-to-use yet robust platform, helpful resources for learning, and affordable plans, Stock Rover has become a go-to tool for investors of all experience levels. They offer free trials for the paid plans so you can experience the full power of their platform before committing to a subscription. Why not give it a test drive and see how Stock Rover can take your stock analysis to the next level?
FinViz serves as a stock screening tool, providing individual investors with a unified platform to screen stocks, examine market visualizations, perform backtesting, access financial statements, view real-time quotes, and establish email alerts. This versatile platform caters to long-term and short-term investors, enabling them to identify potentially lucrative stocks that align with their specific search parameters through customizable filters.
For $39.50/month, FinViz Elite provides more advanced features like:
- Access to more metrics, filters, and alerts
- Larger watchlists
- Custom layouts
- Additional charting tools
- Server-side alerts
FinViz Elite is ideal for active traders and investors seeking an affordable, user-friendly platform to analyze stocks and the overall market. The backtesting feature allows you to see how well your trading strategies and models would have performed historically so you can optimize them before putting real money on the line.
Whether you’re a beginner learning the basics or a seasoned pro, FinViz provides an easy-to-use toolkit to find new stock ideas, test strategies, and make more informed investment decisions. Try the free version to see if the layout and available data meet your needs. For more serious traders, the Elite upgrade is very reasonably priced for the functionality provided.
TradingView is a popular cloud-based stock analysis and charting platform for new and experienced traders.
With pricing starting at free, TradingView offers sophisticated yet easy-to-use tools for conducting technical analysis on stocks. The HTML5 charts allow you to quickly identify support and resistance levels, trend lines, and chart patterns. You can also set up custom alerts to notify you of opportunities.
The stock screener gives you an overview of the market so you can find investment opportunities that match your criteria. Filter stocks by fundamentals, technical, sectors, regions, and more. Spot trends before others and get in on the ground floor of up-and-coming companies.
In addition to the tools, TradingView offers an active community of investors sharing trade ideas, market analysis, and opinions. Follow expert traders in your sector or region and see their live streams demonstrating how they find and evaluate stocks. You can even connect with them to ask questions and improve your skills.
Overall, TradingView provides a powerful yet affordable set of tools for analyzing stocks and improving your trading skills. Both new and experienced investors will find value in the platform.
MetaStock provides robust tools for analyzing the markets and finding trading opportunities. Their platform offers over 300 charts and indicators covering stocks, bonds, ETFs, and forex. Making it one of the best stock charting software. MetaStock uses top-tier data from Refinitiv and Xenith to power their premier screening and real-time news features.
MetaStock D/C provides end-of-day data, perfect for longer-term traders. You can view any combination of charts to uncover insights. To access D/C’s data, you’ll need a separate Refinitiv DataLink subscription. DataLink provides accurate signals to give traders an edge.
MetaStock offers key features to support traders, including:
- Charts: View data in line, bar, candlestick, and other styles.
- Indicators: Apply 50+ indicators like moving averages, Bollinger Bands, RSI, and Fibonacci.
- Expert Advisor: Get trading signals and recommendations from experts.
- Scanning: Scan the markets for opportunities that match your criteria.
- Backtesting: Test strategies on historical data to see how they would have performed.
MetaStock offers one-time and subscription options. MetaStock D/C subscriptions start at $59/month. MetaStock Xenith R/T has a one-time fee of $1,395.
Tickeron offers a variety of useful tools for traders at every level. Their free Beginner plan gives you access to basics like a profile diversity score to help build your portfolio.
The Intermediate plan provides AI trading services to supplement your skills. The Expert plan is ideal for serious traders and offers the most robust tools. Though the add-on features in the Expert plan are mandatory, bringing the monthly cost up to $250.
Tickeron aims to enhance your profile’s performance through tools and educational resources. Their Screener Tool uses AI to filter stocks based on your chosen criteria. The Portfolio Optimizer provides analytics to balance risk/reward in your portfolio. The Tickeron Academy offers courses and video tutorials to strengthen your skills.
While the high-end plans are pricey, Tickeron does offer solid value for beginning and intermediate traders. Their AI-based tools can save you time finding and evaluating stocks. The educational resources help you continue improving your trading understanding over the long run. If you want to step up your trading game, Tickeron is worth a look.
QuantConnect is a browser-based, algorithmic platform that empowers users to craft, evaluate, and implement personalized trading strategies.
Operating atop an open-source algorithmic trading engine named LEAN, QuantConnect arises from the collaborative efforts of more than 150 engineers. This endeavor has culminated in developing a sophisticated and remarkably swift trading platform tailored to the needs of traders.
QuantConnect provides leading backtesting capabilities, support for various asset classes, broker integrations, and more. Some of its many features include:
- Rapid backtesting
- Multi-asset support
- Broker integrations
- Parameter optimization
- Live trading
QuantConnect offers four subscription plans depending on your needs. The free plan includes unlimited backtesting and community support. Paid plans provide additional features like more historical data, server-side backtesting, and live trading capabilities.
- Researcher | $8 per user/month
- Team | $20 per user/month
- Trading Firm | $40 per user/month
- Institution | $80 per user/month
Whether you’re looking to backtest a new trading strategy or deploy algorithms to trade live, QuantConnect provides an innovative platform for algorithmic and quantitative traders. Sign up today to access their robust toolset and community of like-minded traders.
Overview of the Best Backtesting Software
Backtesting software allows you to test your trading strategies using historical data before putting real money on the line. By recreating the past, you can see how your strategy would have performed and determine its viability.
Backtesting software lets you determine if your trading idea holds merit before risking money in the markets. By analyzing how it would have performed in the past, you gain insights to refine and improve it for the future. With the right tool and a bit of practice, you’ll be executing like a pro in no time.