Amid a dynamic forex market environment, you can’t be sure of the efficiency of any trading strategy. Some may stand the test of time, some may not, requiring you to revisit them and make the required changes to effectively deal with the prevailing market environment. That’s why backtesting forex trading strategies is increasingly employed by traders worldwide. It’s a tool to know whether the strategy applied can yield returns. It leaves out the scope for any emotion-based decisions that often lead traders to losses. Types of Backtesting Forex Trading Strategies Manual Backtesting Here, traders can check charts and prices or historical Excel data to figure out how efficient the strategy has been. It is particularly suitable for traders with no knowledge of programming. Backtesting with Code If you are a programming expert, you can use the Python programming language to write your own backtesting algorithms. Backtesting Tools For a precise analysis by traders who don’t know programming, backtesting tools that can write on their behalf are an automatic approach to testing their forex trading strategies.