If you’re new to forex trading or have traded forex for a while, you would agree with me that there are tons of trading tools online. The question is: how can you tell the useful tools for traders in forex trading? Which one will only waste our time?
Today, I will list out the most useful tools for your daily trades. Maybe you have already used these tools, or maybe not. At least I hope that this article can provide you with some new tools so you can be more successful in forex trading.
Trading platform is the most basic tool for everyone in forex trading. A good trading platform will bring you good results from trading.
The most common trading platforms are MT4 and MT5. Millions of traders choose to use it. That can prove how effective they are. If you have any other trading platforms that you’d like to share, please comment below.
Here are some common backtesting tool that many traders believe in:
- Profitspi.com: this is an online program built for backtesting financial instruments like forex or stock. They have a wide range of indicators such as moving average, trading volume, ichimoku, or candlesticks… This program doesn’t require any programming skills from traders. Therefore, it is very suitable for beginners. You just simply add the tools to backtest. However, it cannot backtest complicated trading strategies. So it’s not really for professional traders.
- QuantConnect.com: This is completely the opposite to Profitspi.com in terms of main users. You can backtest complicated trading strategies. It is also very flexible. However, it will require programming skills so who use it are mostly professionals and experts.
Fund management tools
Do you know what is the most important factor in fund management? It is trading volume. Every professional trader has their own fund management tool that they trust. If you’re new to the market, let me recommend 3 useful tools for traders in forex trading:
- Myfxbook calculator: this tool can thoroughly calculate your trading volume in forex trading.
- Daniels Trading calculator: this is mainly for calculating your trading volume in futures trading.
- Investment U calculator: this tool is very suitable for calculating trading volume of your stock and trading options.
Forex trading tools
This is a list of other tools that I think will help you greatly in your daily trading. Let’s check out what they are:
- Market Hours: One of the biggest problems for traders is that they don’t know what the current trading session is. Or what time does the European session or Asian session open. This tool is made to answer all those questions. Thanks to this tool, you can view the current activities in the market. As a result, you can know when the market is active and when it is now.
- Currency Correlation: This tool will help you evaluate the correlation of various currency pairs. This is like a very basic tool. Some traders even view it as indispensable. You shouldn’t trade a currency pair without checking the strength of correlated pairs.
- Volatility Calculator: This is one of the tools that help traders measure the daily volatility of different pairs. You can identify the current state of the market thanks to it. Based on the result, you can set your goal and place Stop Loss more properly.
Above are the useful tools for traders in forex trading. They will have a significant effect on your trading when you start using them. I hope you have found yourself something useful to utilize.