11 Best Backtesting Apps/Tools for Indian Traders in 2024
Thinking about the future is great, but in the Trading World, history too holds an important place. Every trader understands the importance of studying the past data to make sure they are putting money on the right stock.
If you are new to Trading, this blog is going to make things a lot easier for you. Keep reading to unlock some great trading secrets!
Stock Trading can be exciting, but it’s also risky.
That’s where backtesting comes in handy.
What exactly is Backtesting?
Are You Confused About Backtesting Too?
Backtesting simply means applying a strategy or predictive model to some historical data to determine its accuracy. It enables traders to test trading strategies without the need to risk capital. Common backtesting measures include net profit/loss, risk-adjusted return, volatility, market exposure.
Essentially, it’s like running a simulation to see how well a strategy would have worked in the past, giving you confidence before using it in real trades.
Now that you have understood what Backtesting is, we have curated a comprehensive list of Best Backtesting Tools for Global Stock Market Trading.
AmiBroker
AmiBroker is a powerful platform favoured by many traders for its speed and flexibility. It’s known for its advanced charting and scripting capabilities, making it a favourite among more experienced traders.
Back testing engine in AmiBroker uses some predefined values for performing its task including the portfolio size, periodicity daily/weekly/monthly , amount of commission, interest rate, maximum loss and profit target stops, type of trades, price fields and so on.
It’s highly customizable with AmiBroker Formula Language but is considered a bit difficult to learn for beginners. But it does support integration with Indian Brokers for Real-time Data, so that’s a plus point.
Upstox Pro
Upstox Pro is another platform from one of India’s leading brokers, offering a suite of tools for traders including backtesting features and is noted for its speed and reliability.
Its user-friendly interface is another advantage of using Upstox Pro. But, one limitation of this tool is that it is accessible only to the Upstox Users and its backtesting features are not as advanced as other known platforms.
MetaTrader
Most popular and capable trading platform, MetaTrader is also known for its robust backtesting capabilities. It’s widely used by forex traders and offers a range of tools to create and test trading strategies, making you confident for your stock listings.
Along with its user-friendly interface and extensive library of indicators, MetaTrader also comes with Automated Trading Scripts and supports Multiple asset classes. You can use this one platform to trade Forex, Commodities and Stocks, all with the help of great Backtesting Tools.
One downside of this application software is that for creating custom strategies, you “might” need some programming knowledge.
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TradingView
I bet you were waiting for this name in the list.
TradingView is best known for its intuitive web-based platform, offering powerful charting tools and a vibrant community. It’s the perfect trading tool for traders who prefer a more visual approach to backtesting.
With a strong community support for shared strategies and easy access to a wide range of markets, including Indian Stock Exchange, it’s the go-to tool for many newbies as well as seasoned traders.
AlgoTest
Dedicated backtesting platform designed specifically for Indian traders, AlgoTest is relatively new in the market but has gained popularity for its primal focus on the Indian exchanges NSE and BSE.
The best part of the whole AlgoTest usage journey is the Visual Strategy Building feature, so that you don’t have to know coding to build Backtesting Strategies. It comes handy at an affordable price but is a bit less versatile, as compared to global platforms.
If you’re looking for a concise list (it will save you time) with direct links to the websites, just click the button below!
QuantConnect
The next in the list is QuantConnect. A cloud-based platform that offers backtesting for a wide range of financial products, It’s QuantConnect is particularly popular among algorithmic traders and developers who like to code their own strategies.
Happy Developers, Happening Strategies.
It supports multiple programming languages C, Python, etc. with access to a wide array of historical data, and also has provision for community driven pre- built strategies for the busy on the go traders! The only snag in using QuantConnect is its requirement of programming skills which can be a bit overwhelming for beginners.
NinjaTrader
NinjaTrader is a popular platform for active traders and those interested in futures, forex, and stocks. It offers powerful backtesting tools, especially for traders who like to build and test their custom indicators and strategies.
Only flaw of this platform is the steep learning curve for new traders. Other than that, it;s a great tool to use for advanced charting and backtesting.
Zerodha Streak
A product of one of India’s largest stockbrokers, Zerodha Streak allows traders to create, backtest and deploy strategies , all without coding!
With its seamless integration with Zerodha Trading Accounts and real-time testing feature, it has quickly managed to become the most preferred Backtesting Tool for Indian Traders.
Backtrader
Backtrader is an open-source Python library for backtesting trading strategies. It’s popular among developers who want complete control over their backtesting process. It’s free and supports multiple data feeds and brokers.
MetaStock
MetaStock is another veteran in the trading software market. It’s known for its robust technical analysis and backtesting tools, making it suitable for both beginners and seasoned traders. With an extensive library of trading systems and indicators, it’s quickly gaining attention. But it can seem a bit overwhelming to the new users due to the number of features.
A great Trading and Backtesting tool if you are already a pro trader!
MultiCharts
Whether you need day trading software or you invest for longer periods, MultiCharts has features that may help achieve your trading goals. High-definition charting, built-in indicators and strategies, one-click trading from chart and DOM, high-precision backtesting, brute-force and genetic optimisation, automated execution and support for EasyLanguage scripts are all key tools this software offers.
Conclusion
Backtesting is a crucial step in developing a successful trading strategy. Whether you’re a beginner or an experienced trader, there’s a tool out there that fits your needs. The key is to choose one that matches your trading style and technical expertise.