10 Best Stock Backtesting Software For Trading Strategies 2022

Finding Great Backtesting Software Is Hard! We Test In-Depth 10 Top Trading Strategy Testing Platforms For Stocks, Fx & Crypto

This review reveals Trade Ideas is the best AI automated stock backtesting software and auto-trade system. MetaStock enables stock chart backtesting and forecasting strategies. TradingView offers great free backtesting software for stocks, forex, and cryptocurrencies.

I have over two decades of investing and trading experience and I have personally developed many backtested systems and strategies, two of which beat the market and are profitable, the Beat the Market strategy I developed on Stock Rover, and the MOSES system I developed on Tradingview.

Best Backtesting Software Review
Best Backtesting Software Review
We independently research and recommend the best products. We also work with partners to negotiate discounts for you and may earn a small fee through our links.

What is Stock Backtesting?

Stock backtesting is a process used to test if a set of technical or fundamental criteria for stock selection has resulted in profitable trades in the past. A good backtesting system will report executed trades, the trade duration, the win/loss ratio, and the drawdown and compounded return.

For example, if your hypothesis is a stock with a positive RSI number and an increase in earnings will increase the stock price, then a stock backtest will prove if the strategy has worked in the past. The logic here is that if the strategy worked in the past, it might work in the future.

Stock Backtesting Software Summary

The best stock backtesting software for traders is Trade Ideas, MetaStock, and Tradingview. For growth, dividend, or value investors Stock Rover and Portfolio123 enable 10-years of fundamental financial backtesting.

Our testing process selected Trade Ideas as the best stock backtesting software for traders, it is a fully automated AI trading system that does all the backtesting for you. MetaStock is the most powerful stock backtesting & forecasting platform for broker agnostic traders. Tradingview offers an intelligent, robust stock backtesting solution for free. TrendSpider provides innovative AI-driven automated backtesting and chart analysis.

Best Backtesting Software Rating Best For:
Trade Ideas 4.7/5.0 Day Traders (USA)
Stock Rover 4.6/5.0 Investors (USA)
Tradingview 4.6/5.0 Stock, Fx & Crypto Traders (Global)
MetaStock 4.5/5.0 Stock & Fx Traders (Global)
TrendSpider 4.5/5.0 Stock, Fx & Crypto Traders (USA)
Portfolio123 4.5/5.0 Stock, Fx & Crypto Traders (USA)
Tickeron 4.5/5.0 Investors & Traders (USA)
Interactive Brokers 3.8/5.0 Investors (Global)
Tradestation 3.8/5.0 Traders (USA)
Quantshare 3.6/5.0 Quant Traders (Global)

Best Backtesting Software for Traders

  1. Trade Ideas: Best AI Automated Backtesting & Market-Beating Trade Signals
  2. Tradingview: Best Shared Social Strategies & Effective Pine Code For Backtesting
  3. MetaStock: Best For Powerful Backtesting + Forecasting, Win/Loss Reporting
  4. TrendSpider: Innovative Cutting Edge AI System Backtesting & Multi-timeframe Analysis
  5. Tradestation: Great Chart Backtesting For Tradestation Brokerage Clients
  6. Quantshare: Low Price, Broker Agnostic Backtesting, But Challenging to Use

Best Backtesting Software for Investors

  1. Stock Rover: The Best Backtesting Software for Value, Dividend & Growth Investors
  2. Portfolio123: Stock Backtesting Software & Fundamental Research for Investors
  3. Tickeron: Backtesting Software with AI Signals, Portfolios & Pattern Recognition
  4. Interactive Brokers: Best For Fundamental Backtesting of Portfolio Strategy

1. Trade Ideas: Best AI Automated Backtesting & Market-Beating Trade Signals

Trade Ideas wins our review by providing the best AI-driven automated backtesting and auto-trade software, offering day traders specific audited trading signals for high probability trades.

I recommend Trade Ideas for day traders wanting specific artificial intelligence-driven backtested trading signals and the option to auto trade commission-free with eTrade.

Trade Ideas introduces us to a world where you do not need to manually backtest your stock trading theories for hundreds of hours, to get an edge in the market. With Holly AI, the work is done for you.

Trade Ideas Key Features

Trade Ideas Rating 4.7/5.0
⚡ Features Charts, Watchlists, Screening, Trading Room
🏆 Backtesting Features AI Trade Signals, Win Probability
🎯 Best for US Day Traders
💰 Price $118-$228/mo
🎮 Trial Try the Live Trading Room Free
✂ Discount -15% With Code “Liberated”
Liberated Stock Trader Review Winner
Trade Ideas – Review Winner – Best AI Trading Software & Backtesting

Pros

  • 3 AI Trading Algorithms That Beat the Market
  • Fully Automated Backtesting
  • Exceptional Stock Scanning
  • Specific Audited Trade Signals
  • Auto-trading With AI Signals
  • Live Daily Trading Room

Cons

  • No Mobile App

Trade Ideas Backtesting Software Discounts

At first, access to the Holly AI system might seem a little pricey. You will need to go for Trade Ideas Premium, which costs $228 per month, or you can save $468 by going for an annual subscription costing $2268. You get access to robust backtesting and the Holly Artificial Intelligence System for this investment.

Trade Ideas Backtesting

Trade Ideas has 3 different AI algorithms that automatically backtest stock chart patterns and volume conditions to find high probability trades for day traders. Holly, Holly 2.0, and Holly Neo are the trading algorithms that are constantly backtesting millions of conditions in real-time to find trading opportunities. Each recommended trade has a win probability, and a full set of backtested data for you to review.

You can also build your own backtesting strategies using Trade Ideas, and you can even set to the system to auto-trade for you.

  • AI Virtual Trading Analyst Holly: 3 different constantly evolving AI algorithms
  • Chart Based AI Trade Assistance & Entry and Exit Signals
  • Risk Assessment: Detailed information on the backtested performance of the recommended trade.
  • Build and Backtest any Trade Idea: Compelling point & click backtesting system.
  • Autotrade w/ Brokerage Plus and AI – Advanced auto trading commission-free with Etrade.

Trade Ideas Backtesting

Trade Ideas is powerful backtesting software, which is easy to use, and you do not need to have any programming knowledge. A point-and-click backtesting system is rare in this industry; the only good software with this capability is TrendSpider.

I have run many backtests with Trade Ideas, but the one I wanted to focus on was a backtest of the “Unusual Social Mentions Scan.”  This is a good test of the wisdom of crowds.

Trade Ideas - OddsMaker Backtesting The Social Mentions Strategy
Trade Ideas – OddsMaker Backtesting The Social Mentions Strategy

I wanted to focus on was a backtest of the “Unusual Social Mentions Scan”.  This is a good test of the wisdom of crowds.

As you can see in the backtest result above, the crowds are not very wise as the backtest shows that the system loses 70% per year. This helps me draw three conclusions.

  1. Do not listen to people on social media.
  2. Trade Ideas provides an excellent and unique insight into stock market crowd sentiment.
  3. You may have a winning system if you do the opposite of what people suggest on StockTwits.

Trade Ideas Pro AI

The AI algorithms developed by Trade Ideas are the main reason you would want to sign up. I had a lengthy zoom session with Sean Mclaughlin, Senior Strategist over at Trade Ideas, to delve into how the AI works, and I was very impressed. This company is laser-focused on providing traders with the best data-supported trading opportunities. There are currently four AI systems in operation.

Holly is 3 AI Systems Applying Over 70 Strategies Differently.

Holly AI

Holly AI is the original incarnation of the Trade Ideas algorithm. Holly applies 70 different strategies to all US & Canadian stock exchanges, including pink sheets and OTC markets. 70 strategies multiplied by 10,000+ stocks means millions of backtests every day. Only the strategies with the highest backtested win rate over 60% and an estimated risk-reward ratio of 2:1 will be suggested as potential trade the following day.

Trade Ideas - Holly Grail's Trade History
Trade Ideas – AI Stock Backtesting – Holly Grail’s Trade History / Strategy & Exits.

Holly 2.0

Holly 2.0 is a more aggressive version of Holly AI, presenting more aggressive day trading scenarios for you to choose from. Trade Ideas operates three key trading styles with each AI engine, Conservative, Moderate & Aggressive. Holly 2.0 is an aggressive strategy with higher risk but ultimately higher rewards.

Holly Neo

Holly NEO is a newer AI that seeks to trade real-time chart patterns. It utilizes a mix of four strategies. The Pullback Long strategy seeks to identify trades where the stock price is down and is seeking to start moving up on higher volume. The Breakout Long strategy discovers where stock price breaks out through a key resistance or new highs. The Pullback Short strategy identifies a short pullback opportunity in price. Finally, the Breakdown Short backtested finds shorting opportunity where upward momentum breaks down.

Additionally, Omni AI is a real-time AI ideas engine, but it combines all of the above strategies into a straight short or long trade recommendation. It is a new development and does not yet have a proven track record, but the performance looks good on viewing the recent trades.

Trade Ideas Buy & Sell Signals

Trade Ideas uniquely shows you every signal buy and sell signal visually on a chart. I have highlighted a trade recommended by Holly AI (Holly Grail) in the chart below. This trade for Cleveland Biolabs (Ticker: CBLI) made a 25% profit within a 4 hour period. Not how the buy and sell signals are depicted on the chart.

Trade Ideas - Trades & Buy & Sell Signals
Trade Ideas – Trades & Buy & Sell Signals

The Facts About Trade Ideas Signals

  • Trade Ideas has large institutional clients and is a legitimate business; they also partner with Interactive Brokers.
  • Trade Ideas recommends, on average, about 3 to 10 trades per day.
  • Each trade duration is from a few minutes to a few hours.
  • Upon downloading and analyzing 65 days of trades, I can confirm the performance numbers claimed by trade ideas.
  • You need to be an active day trader to take advantage of Trade Ideas.
  • Trade Ideas returns approximately 20% per year.
  • Trade Ideas has, in the last 2 years, beaten the S&P500.
  • You need to be short and go long to take advantage of the trading strategies.
  • Depending upon your leverage, trading style, and trades you take, you could make more than 20% or even make a loss.
  • TI is Day Trading Software; you will need to hold a minimum balance of $25K in your brokerage account to pattern day trade in the USA actively.

Trade Ideas AI Backtesting Performance

The claimed Trade Ideas performance is available on their website, and it is quite impressive. But to judge the performance of any system, we have to compare it to the performance of the underlying benchmark. In this case, I compare $50,000 invested in the S&P 500 versus day trading with Trade Ideas.

AI Performance Starting Capital Jan 2019 Ending Capital Oct 2020 Return % Per Year
Holly Grail (AI)  $50,000.00  $71,186.00 42% 23%
Holly 2.0  $50,000.00  $80,510.00 61% 33%
Holly Neo  $50,000.00  $71,186.00 42% 23%
S&P 500  $50,000.00  $66,000.00 32% 17%

 

As you can see, Holly has out-performed the S&P 500 since 2019. Interestingly Holly did not suffer the huge losses incurred in the S&P 500 during the Corona Crash from March to April 2020.

Get 15% Off Trade Ideas Read the Full Trade Ideas Review

2. Stock Rover: Best Backtesting Software for Investors

Stock Rover is my favorite backtesting software for value, growth, and dividend investors. I have built my Beat the Market growth stock system using Stock Rovers backtesting capability and their excellent 10-year financial database.

Stock Rover Rating 4.6/5.0
⚡ Features Charts, Powerful Screening, Research, Portfolio Mgt, Broker Integration
🏆 Backtesting Features 10-Year Historical Financial Data, Fundamental Backtesting
🎯 Best for Growth, Dividend & Value Investors
🆓 Free Version Stock Rover Free
🎮 Premium Trial Free 14-Day
✂ Premium Discount 25% During Trial Period
🌎 Markets Covered USA

Pros

Stock Rover Review: Winner Best Stock Research Tool For Income, Growth & Value Investors
Stock Rover Review: Winner Best Stock Research Tool For Income, Growth & Value Investors
  • 650+ Financial Screening Metrics
  • Potent Stock Scoring Systems
  • Unique 10 Year Historical Data for Backtesting
  • Warren Buffett Value Screeners & Portfolios
  • Real-time Research Reports

Stock Rover Cons

  • No Social Community
  • Not Recommended for Traders

Stock Rover Backtesting

Stock Rover provides ten years of backdated financial information and scanning possibilities, better than nearly every other stock screening package. What is unique is that you can actually backtest screening results.

Below I share the “Beat the Market Screener Backtest,” which focuses on growth and financial stability. I was able to backtest the strategy for the previous 7 years using Stock Rover.

How to Backtest a Stock Screen in Stock Rover
How to Backtest a Stock Screen in Stock Rover

The Liberated Stock Trader Beat the Market Screener seeks to select stocks with a significant chance of beating the S&P500 returns. The screener uses growth in free cash flow and explosive EPS growth. Combining this with Joel Greenblatt’s ROC and Earnings Yield formulas, “the Magic Formula,” we have a selection of stocks that beat the market 7 of the last 8 years.

This work has been made possible due to the team’s fabulous work over at our partner Stock Rover, who has created a stock research and screening platform that won our in-depth Best Stock Screener Review for the last two years.

Why is Stock Rover so special when it comes to creating superior stock screeners? Because Stock Rover maintains a clean 10-year historical database of hundreds of vital ratios, calculations, and metrics. This means you can travel back in time to test if your stock selection criteria have worked in the past.

This Liberated Stock Trader Beat the Market Screener (LST BTM) is built into the Stock Rover library and is available to all Stock Rover Premium Plus Subscribers.

Beating the Market With Stock Rover?

To beat the market means that your stock investments will need to outperform the underlying index of stocks. In the USA, the market to beat is generally the 8% annual return of the S&P500 index. Anyone could beat the market in a single year, but the key challenge is outperforming the market over the long term.

Beating the market is the nirvana for every investor, but many investors realize it can be tough to outperform the stock market’s returns year after year.

Beat the Market Backtest Performance.

8 Year Performance S&P500 % Gain Jan 1st to Dec 31st LST Beat the Market Screener % Gain Result
2013 29.8% 49.4% Beat
2014 11.4% 16.9% Beat
2015 -0.7% 2.6% Beat
2016 9.5% 23.2% Beat
2017 19.4% 37.4% Beat
2018 -6.2% -24.9% Lost
2019 28.9% 46.8% Beat
2020 18.4% 51.8% Beat
Average Yearly Return 13.8% 25.4% Beat
Get Stock Rover Now + 25% Discount Read The Detailed Stock Rover Review

How to Beat the Stock Market With Stock Rover

LST Beat The Market Stocks Strategy

I love Stock Rover so much that I spent 2 years creating a growth stock investing strategy that has outperformed the S&P 500 by 102% over the last eight years. I used Stock Rover's excellent backtesting, screening, and historical database to achieve this.

This Liberated Stock Trader Beat the Market Strategy (LST BTM) is built exclusively for Stock Rover Premium Plus Subscribers.



3. Tradingview: Best Free Backtesting Software & Trading Community

TradingView provides excellent free backtesting for stocks, Forex, and cryptocurrencies using their industry-leading pine script strategy engine. With TradingView, you get backtesting, screening, and charting for all stock exchanges globally, plus a community of 3 million active users sharing ideas and strategies.

TradingView Rating 4.6/5.0
⚡ Features Charts, News, Watchlists, Screening
🏆 Backtesting Features Trading, Flexible Chart Backtesting, Pine Code
🎯 Best for Stock, Fx & Crypto Traders
🆓 Free Version TradingView Free
💰 Price $0-$59/mo
🎮 Trial Free 30-Day
✂ Discount -50% Discount
🌎 Region Global

There is no doubt about it; I love TradingView and use it every day. I regularly post charts, ideas, and analyses and chat with other traders. Follow me on TradingView. The entire community on TradingView is focused on trading and investing, and the service is first class.

Liberated Stock Trader Review Winner
TradingView: Review Winner, Best Stock Backtesting Software

Pros

  • Social First, Chat, Publish, Follow
  • Easy Backtesting & Development With Pine Script
  • Strategy Tester Manual Backtesting
  • Global Exchange Data
  • Backtesting for Cryptocurrency, Forex & Stocks USA & Globally

Cons

  • No Real-time News
  • Backtest Only Single Instruments Not Entire Markets

Video: Backtesting With TradingView

Launch TradingView Now

TradingView’s Free Backtesting Software

Surprisingly, the only free backtesting software is TradingView which allows users of their basic free plan to backtest stocks. TradingView’s pine script engine enables powerful and flexible chart backtesting for up to 100 years of market data.

TradingView has an active community of people developing and sharing stock analysis systems, and you can create and sell your own with the Premium-level service. Also, there are many indicators and systems from the community for free.

They have implemented backtesting straightforwardly and intuitively. In the image below, I have implemented an in-built strategy called “Slow Stochastics,” which initiates a trade when the stochastics indicators are oversold and sells when stochastics is overbought.

I like that in a few clicks [Strategy Tester -> Add Strategy], you have results. You can also tweak the strategy parameters, as you can see below, and observe the results.

Backtesting Strategies With TradingView
Backtesting Strategies With TradingView

The TradingView backtesting results reporting is good. The system shows you the profit performance of the strategy, including net profit, drawdown, buy & hold return, % profitable trades, and the number of trades. Also, all the trades are plotted on a chart for a valuable visual reference.

I have even implemented my Stock Market Crash Detector strategy into TradingView; I am no developer, but the Pine Script language is so natural anyone can do it.

TradingView Market Replay

TradingView also has a market replay functionality enabling you to play through the timeline. This shows you the chart scrolling and the trades executed; it is simple yet powerful to use. All buy and sell orders are drawn on the chart and highlighted. All in all, this is a great package that is included in the free version.

The only thing you cannot do is forecast and implement Robotic Trading Automation, but that is typically what broker-integrated backtesting tools perform.

Pricing & Software

You can have TradingView for free; it is a winner of our Best Free Charting Software Review. However, there are limitations. I would recommend going for the PRO+ at $19 per month or the Premium at $39 per month; the benefits are extensive, including priority customer support and unlimited everything. Also, a huge benefit is that the data speed and coverage are mind-blowing, covering literally every stock market on the planet and not just stocks but ETFs, mutual funds, futures, Forex, bonds & cryptocurrencies AT NO EXTRA COST.

TradingView Platform Analysis

Trade Management. With TradingView, you get full broker integration, you can place trades on charts, and it will take care of profit & loss reporting and analysis for you. The only thing it does not cover is Stock Options trading. There are a few complications trading stocks in the USA directly from charts; you will need to see if your brokers have a CQG integration.

Fundamental Scanning & Screening. It is a perfect 10 for TradingView as they hit the mark on real-time scanning and filtering and fundamental watchlists. The list of fundamentals you can scan & filter on is genuinely huge. Any idea you have based on fundamentals will be covered.

News & Social Community. As soon as you connect to TradingView, you realize this is also developed for the community. You can look at community ideas, post your charts and ideas, and join limitless numbers of groups covering everything from Bonds to Cryptocurrencies. You can connect with other traders, read their ideas, be inspired, and chat. It is simply the best socially integrated trading platform on the planet. The news feeds are fully integrated, including Kiplinger, DailyFX, Futures Magazine, FXStreet, and StockTwits.  Add that to the social network, and you have a great solution.

Connect with me on TradingView it's free
Connect With Liberated Stock Trader on TradingView for Free
Chart, scan & connect with me for free on TradingView for my latest trading ideas and chart analysis

Technical Analysis & Charts. With over 160 different indicators, and unique specialty charts such as LineBreak, Kagi, Heikin Ashi, Point & Figure, and Renko, you have everything you will need as an advanced trader. With the Premium membership, you also get Level II insight, fully integrated.

TradingView - Insanely Beautiful Chart, with a massive selection of indicators. This Chart Feature Moonphase and Darvas Boxes
TradingView’s Insanely Beautiful Charts, with a massive selection of indicators. This Chart Features the Moon phase and Darvas Boxes.

TradingView Backtesting Summary

TradingView is a great way to kick off your life as a backtesting system developer. There is a vast selection of free and premium strategies to test and the biggest and most active community of traders on the planet. TradingView has it all. I would recommend going for the Pro or Pro Plus subscription as they enable more charts, indicators, and views, including intraday market data, which you might need for your backtesting.

Get TradingView Read the Full TradingView Review

How to Get 16% to 60% Epic Discounts on TradingView Pricing Plans


4. MetaStock: Powerful Stock Backtesting & Forecasting Strategies

MetaStock is simply one of the best independent, broker agnostic, stock backtesting, and forecasting software platforms available. MetaStock enables over 300 chart indicator backtesting strategies.

MetaStock Rating 4.4/5.0
⚡ Features Charts, Watchlists, Scanning
🏆 Backtesting Features Forecasting, Technical Chart Backtesting
🎯 Best for Stock & Fx Traders
💰 Price $59-$250/mo
🎮 Trial 30 Day Free Trial
✂ Discount 3 Months for 1
Liberated Stock Trader Review Winner
MetaStock: Review Winner, Best Backtesting & Forecasting System & Marketplace

Pros

  • Develop Sophisticated Systems & Backtest Entire Markets In 1 Click
  • Great Backtesting Profit, Draw-down & ROI Reporting
  • Exceptional & Intuitive Forecasting Software
  • Number 1 For Charts, Indicators & Real-Time News
  • Excellent Customer Support & Educational Seminars
  • All Global Markets Covered + Broker Independent

Cons

  • Scripting Skills Required
  • No Automated Trade Execution

Visit MetaStock

MetaStock Backtesting

MetaStock enables backtesting over 300 chart, price, and volume indicators, enabling the development of an extremely granular trading strategy for stocks, Forex, and commodities.

As you launch MetaStock, you are presented with the Power Console, enabling you to quickly select what you want to do. Select System Test, and you will have access to 58 different systems you can backtest. I selected the Equis MACD Expert System in the example below and ran it on the entire Nasdaq 100.

After 60 seconds, the backtest was completed and presented me with a list of every buy or sell trade and, of course, the drawdown on the portfolio chart that you can see above. You can click through to any trade to see the background to the trade, size of the trade, duration, and profit or loss.

MetaStock harnesses many inbuilt systems and Expert Advisors to help you as a beginner, or intermediate trader understand and profit from technical analysis patterns and well-researched systems. This is a crucial area of advantage.

Of course, the inbuilt systems will not make you super-rich, so you will want to backtest and develop your own profitable system. With some scripting or programming skills, you can build a unique backtested strategy with MetaStock. If you do not have the required skills, you can ask MetaStock or one of a considerable number of MetaStock Partners to assist you in creating your system.

MetaStock System Tester - Backtesting Platform
MetaStock System Tester Backtesting Platform

Their partners sell many premium stock trading systems for MetaStock and are usually backed up with training and webinars to support the clients.

Fundamental Scanning and Screening

MetaStock is a partner of Refinitiv, the biggest provider of real-time news and market analysis. Refinitiv was recently purchased by the London Stock Exchange for $27 billion, primarily for their incredible database of global financial data, not just on companies but countries, economies, and industries.

With the MetaStock Refinitiv service, the data filtering and scanning possibilities are vast. MetaStock Refinitiv provides an incredibly in-depth analysis of company fundamentals from debt structure to top 10 investors, including level II market liquidity. MetaStock is highly rated with excellent watchlists featuring fundamentals and robust scanning of the markets.

MetaStock Forecaster Capability

The most significant addition to the MetaStock arsenal is the forecasting functionality, which sets it apart from the crowd. By selecting Forecaster from the power console, you can simply choose one or more stocks, ETFs, or Forex pairs and click forecast. You are then presented with an interactive report which enables you to scan through the many predictive recognizers, which help you understand the basis for the prediction and the methodology. This is a powerful forecasting implementation.

The Wonderful MetaStock Forecasting Tool
The Wonderful MetaStock Forecasting Tool

You can even use artificial intelligence functionality to test a set of variables within your backtesting. You could, for example, test if price moves above the moving average 10,14,18 or 20 in a single test to see which of the moving averages best work with that stock.

To learn more about MetaStock forecasting, watch this video from my partner Hunter Smith over at MetaStock.

MetaStock Backtester/Forecaster Video

Try MetaStock With a 3 Months for 1 Month Deal

MetaStock is one of the few vendors that take forecasting exceptionally seriously. The system backtesting is excellent because it allows you to test if a theory, idea, or set of analyses has worked in the past. Forecasting takes it to a whole new level by playing forward the backtesting to see how successful you might be with a strategy under certain circumstances. The configurable nature of the reporting for both backtesting and forecasting results is powerful.

Technical Analysis & Forex Forecasting

Forex forecasting based on sentiment is an exceptional feature. Never mind the broadest selection of technical analysis indicators on the market today. MetaStock is the king of technical analysis, warranting a perfect rating.

MetaStock covers all the core chart types and includes Point & Figure, Equivolume, and Market Profile charts. When it comes to indicators, MetaStock has 300+ different types, including Darvas Box and Ichimoku Cloud. MetaStock will also help you develop your indicators based on their coding system.

MetaStock Backtesting & Forecasting Summary

For backtesting and forecasting, MetaStock is one of the best services available. My recommendation for an investor or trader is to combine the MetaStock & Refinitiv Xenith Packages. The depth of fundamental research and news in Refinitiv Xenith is staggering, and the in-depth analysis, backtesting, and forecasting in MetaStock is industry-leading.

If $199 per month for the Refinitiv Xenith + MetaStock package is too much, you have other options. If you simply want the end-of-day data and all the MetaStock functionality for backtesting & forecasting, the price starts at $69 per month for MetaStock D/C. You can even buy one-off licenses if you prefer.

Try 3 Months For The Price of 1 With MetaStock Read The Full MetaStock Review

 


5. TrendSpider: Cutting Edge No-Code Strategy Backtesting

TrendSpider provides no-coding system backtesting, meaning you simply need to point-and-click for backtesting charts and indicators. With TrendSpider, you can even select a 1-minute timeframe for intraday backtesting.

TrendSpider has fully automated AI-driven trendlines, Fibonacci, and multi-timeframe analysis for stocks, Forex, crypto, and futures. Add to that a robust backtesting engine, and you have a great technical analysis platform.

TrendSpider Rating 4.5/5.0
⚡ Features Charts, Watchlists, Screening
🏆 Backtesting Features AI Automated Pattern Recognition, Candlestick, Trendlines
🎯 Best for Stock, Fx & Crypto Traders
💰 Price $44-$131/mo
🎮 Trial Free 7-Day
✂ Discount -40% Use Coupon Code “LIB40”
🌎 Region USA
TrendSpider - Most Innovative Newcomer
TrendSpider – Automating Stock Chart Analysis

Pros

  • Automated Trend Line Detection
  • Automatic Multi-TimeFrame Analysis
  • Simple & Powerful Backtesting
  • Real-time Exchange Data Included in Price
  • Automatic Fibonacci Trend Detection
  • Stocks, ETFs, Forex, Crypto, Indices & Futures

Cons

  • No Auto Trading
  • No Social

TrendSpider Free 7 Day Trial

The TrendSpider team is innovating at breakneck speed, and the features they are innovating are unique to the industry.

Trend Spider Backtesting

TrendSpider takes a different approach to backtesting. Because the platform is built from the ground up to automatically detect trendlines and Fibonacci patterns, it already has an element of backtesting built into the heart of the code.

The highest probability trendlines are automatically flagged, and you can adjust the algorithm’s sensitivity that controls the detection to show more or fewer lines.

TrendSpider has implemented a strategy tester that allows you to type what you want to test freely, and it will do the coding for you. It is a smooth and simple implementation that is incredibly user-friendly. There is also the ability to adjust your backtest conditions on the fly, and the “Price Behaviour Explorer” and “System Performance Chart” automatically update.

You can jump into coding if you want to, but the key here is that you do not have to.

Integrated backtesting of automated trendlines, showing win-rate, profitability, and drawdown is a new addition and warmly welcome; the team is propelling TrendSpider into one of the leading technical analysis packages in the industry.

TrendSpider BackTesting Entry & Exit Point Chart
TrendSpider BackTesting Entry & Exit Point Chart

TrendSpider has an excellent price point starting at $27 per month, including real-time data. They have also expanded to cover Forex, Crypto, ETFs, and Futures, which means you can apply the stunning Auto Trend-lines and Multi Time-Frame Analysis on many different markets. The platform is built on HTML 5 and needs Zero installation and Zero data feed configuration.

The system runs on all platforms, from smartphones to PCs. Finally, I have tested the customer support and confirm it is excellent, and you have a human to chat with whenever you like.

Packed full of innovative technical analysis and backtesting tools means that TrendSpider is catapulted to the top of this list. If you are a serious market analyst, then TrendSpider will help you do the job quicker, with better quality, and help you not to miss an opportunity.

Automated trendline detection and plotting do a better job than a human can; using algorithms, the system can detect thousands of trends-lines and flag the most important ones with the highest backtested probability of success.

The multi-timeframe analysis means you can view multiple timeframe charts on a single chart with the trendlines plotted automatically. Another great feature is the advanced plotting of support and resistance lines into a subtlely integrated chart heatmap.

Finally, Raindrop Charts are a unique and intuitive way to visualize volume profile or volume at price action.

Try TrendSpider with a Free 7 Day Trial Read the Full TrendSpider Review

 


6. Tickeron: AI Portfolios & Pattern Recognition Backtesting

Tickeron’s backtesting is automated and has impressive AI-powered chart pattern recognition and prediction algorithms for stocks, ETFs, Forex, and Cryptocurrencies. Tickeron excels at providing thematic model portfolios and specific pattern-based trading signals combined with success probability and AI confidence levels.

Tickeron Rating 4.5/5.0
⚡ Features Portfolios, Watchlists, Screening, AI Portfolios
🏆 Backtesting Features AI Trade Signals, 40 Chart Patterns Recognized, Trend Prediction Algorithms
🎯 Best for Investors & Traders USA
💰 Price $0-$250/mo
💻 OS Web Browser, PC
🎮 Trial 14-Day Free Trial
✂ Discount -79% Presidents Day Sale or 50% Off All Annual Plans

Tickeron’s trading platform is unique and innovative, combining artificial intelligence and human intelligence based on the community of traders, so you can compare what the humans think versus the machines.

Tickeron Review: Winner Best Day Trading Software
Tickeron Review: Winner Best Day Trading Software

Pros

  • 45 Streams of Trade Ideas
  • 40 Real-time Stock, ETF, Forex & Crypto Pattern Recognition
  • AI Trend Prediction Engines
  • Build Your Own Portfolios with AI

Cons

  • Custom Charting Limited
  • Cannot Plot Indicators

Tickeron targets day traders, swing traders, and even investors with an intricate lineup of features and benefits specific to your investing style. Tickeron uses AI rules to generate trading ideas based on pattern recognition. Firstly they use a database of technical analysis patterns to search the stock market for stocks that match those price patterns using their pattern search engine. Of course, each detected pattern has a backtested track record of success, and this pattern’s success is factored into the prediction using their Trend Prediction Engine.

To understand the platform, we first need to look at the pricing structure and what you get for your money.

Pattern Recognition & Prediction With Backtesting

At the heart of Tickeron is the ability of its AI algorithms to spot 40 different stock chart patterns in real-time. You can select which pattern you want to trade, and it will filter stocks, forex, or cryptocurrencies that currently show the pattern. Patterns are split into bullish patterns for long trades or bearish patterns for those who wish to go short.

Tickeron Real-time Stock Chart Pattern Recognition
Tickeron Real-time Stock Chart Pattern Recognition

Tickeron’s real-time pattern recognition is particularly useful for swing traders or day traders where market timing is the number one priority. Tickeron also has the ability to scan the entire market and suggest which patterns are working best on a particular day. In the screenshot above, you can see “Today’s Top Ranked Patterns,” which rates the potential success of the patterns based on the market’s current trading activity.

Ultimately pattern recognition saves pattern traders a lot of work hunting for potential trade setups because it does all of the work for them.

Trading Signals & Prediction

Tickeron has implemented a powerful feature called AI Confidence level. Based on the history of the stock, the success rate of a particular pattern, and the market’s current direction, Tickeron can assign a confidence level to a trade prediction.

In the screenshot below, you can see that the Tickeron AI predicts that ABUS has an 88% chance of declining in value and ACET has an 81% chance of increasing in value.

Tickeron's AI Pattern Prediction Engine
Tickeron’s AI Pattern Prediction Engine

The outstanding feature with the Tickeron prediction engine is that you can simply click “Show previous predictions” to check if the Ai has done a good job in the past, with a particular pattern on specific stocks. The prediction engine provides the right level of clarity and granularity so you can make informed trading decisions.

Tickeron is worth buying if you are a short-term trader because it provides high probability AI backtested trade signals. I recommend a trading account value of over $25K to quality for active pattern day trading.

Get 50% Off Tickeron Read the Full Tickeron Review

 

7. Portfolio123: Backtesting & Fundamental Research for Investors

Testing of Portfolio123 shows stock screening and powerful backtesting software with a robust financial database, and integrated commission-free trading with Tradier. Portfolio123 can be used by income, value, and growth investors but is also advantageous for swing traders.

Portfolio123 Rating 4.3/5.0
⚡ Features Screening, Research, Pre-built Model Screeners, Integrated Free Trading
🏆 Backtesting Features 10-Year Backtesting Engine, 470+ Screening Metrics
🎯 Best for Experienced USA Investors
💰 Price $0-$83/mo
💻 OS Web Browser
🎮 Trial 21 Days for $9

Portfolio123 covers stocks, fixed income, and ETFs on US & Canadian exchanges, so it is unsuitable for international stock investors. With Portfolio123, you can design a real-time trading strategy, fully automated with a broker, that will hold the stocks that pass your screen and sell those that don’t.

Portfolio123 Review: Winner Best Screening, Backtesting & Trading
Portfolio123 Review: Winner Best Screening, Backtesting & Trading

Pros

  • 470+ Screening Metrics
  • 10-Year Backtesting Engine
  • Unique 10 Year Historical Data
  • Pre-built Model Screeners
  • 260 Financial Ratios
  • Integrated $0 Trading

Cons

  • No Integrated News
  • No App for Android or iPhone
  • Initially Complex To Use
  • Technical Analysis Charting Needs Improving

The Portfolio123 screener allows you to filter 10,000+ stocks and 44,000 ETFs to help you find the investments or trades that match your exact criteria. Portfolio123 also has ranked screening which enables you to rank the stocks that best match your criteria, filtering a list from hundreds of stocks to a handful. You can also define your custom universes, setting the macro criteria for which stocks are included in the sample.

Most ideas you have based on fundamentals will be covered with over 225 data points. Portfolio123 has 460 criteria, including analyst revisions and estimates, and technical data.

You can also use Portfolio123 to screen stocks on their performance relative to the S&P500 or any other benchmark, meaning you could develop a strategy to select stocks based on their historical performance versus the market.

The number of factors available for screening is impressive. Not only can you screen based on reliable information from a company’s financial reports, but you can access technical factors, create your factors using period and announcement dates, eliminate stocks with high bid-ask spreads, limit your screen to stocks in a certain industry or sector, rank factors against other stocks in an industry or sector, and change your factor balance depending on economic conditions.

Portfolio123 Review: Incredibly Powerful Screening
Portfolio123 Review: Incredibly Powerful Screening

Building your Portfolio123 screener is theoretically easy; select Research -> Screens, and you can start to play. No programming skills are required to build a Portfolio123 screener, but basic coding will certainly help. If you want to create more powerful screening rules, you will need to spend significant time studying the coding logic and understanding the proprietary criteria names.

Portfolio123 Backtesting

Portfolio123’s backtesting engine is where the software shines. Expertly implemented, fast, and extremely configurable, Portfolio123 has the best backtesting service for people serious about testing fundamental strategies.

Portfolio123 enables you to be very granular in how you set up your backtest, with entry rules, slippage, weighing, rebalance frequency, and custom timeframes.

The Portfolio123 screener is built to make users test not just pre-built concepts but all sorts of hypotheses. You can use your own universe, rank with your multi-factor rank, and run backtests or rolling backtests.

The Portfolio123 screener relies on great data, and they have been working hard to overcome the pitfalls of financial data such as N/A numbers in sparse preliminary reports. Our pre-built factors handle N/A’s efficiently and use alternate algorithms to come up with the best possible result. In a nutshell, great data isn’t an overnight project; they’ve been working on data since 2004.

The image below shows the LiberatedStockTrader screener I developed in the previous section. I backtested the screener for two years to see how it performs historically. In this particular timeframe, my screener beat the market, returning 70.5% versus the S&P500’s 52%.

Portfolio123 Review: Excellent Backtesting Engine
Portfolio123 Review: Excellent Backtesting Engine

Pre-Built Screeners

Portfolio123 has over 76 pre-built screeners that you can import and use. You need to have the Screener subscription plan service to take advantage of this. I have personally reviewed many of them, and they are very thoughtfully built. One of my favorites is the “Small Cap Winners” screener.

The Small-Cap Winner strategy had a 5-year return of 189% versus the Russell 2000 return of 58%, very impressive.

The Small-Cap Winner strategy “attempts to balance growth, value, quality, and sentiment factors, using ones that have worked well for small-cap stocks. It has high turnover as it relies a great deal on the most recent quarterly earnings announcements and, via sentiment ranking, analyst estimates and recommendations”.

Portfolio123 is an excellent screening and backtesting platform ideal for swing traders and medium-term growth investors. An incredible selection of fundamental criteria, a 20-year financial database, plus the most powerful financial backtesting engine makes Portfolio123 a great choice for experienced stock system developers.

Get 21 Days of  Portfolio123 for $9 Read the Full Portfolio 123 Review & Test

 


8. Interactive Brokers: Fundamental Portfolio Backtesting

Ideal for Active Investors and Day Traders seeking the LOWEST Trading Costs, Direct Global Market Access & Quality Tools

Interactive Brokers Rating 3.8/5.0
⚡ Features Low-Cost Stock & Option Trades Globally
🏆 Backtesting Features Portfolio Manager for Fundamental Backtesting
🎯 Best for Investors
💰 Cost Per Stock Trade $0-$1
💻 Platform Web/Mobile

Pros

  • The Best Fundamental Backtesting In The Industry
  • Great Trading Platform
  • Direct Market Access
  • All Markets & Vehicles

Cons

  • You Must Be An IB Client
  • Limited Backtesting On Chart Indicators & Supply / Demand

Visit Interactive Brokers

Interactive Brokers provides direct market access for fast execution and best-in-class margin costs. They are the grandfather of online discount brokers. Not only are they a long-established company, but they are also large.

It has a complete set of services, enabling you to trade practically anything on any market, Stocks, Options, ETF’s, Mutual Funds, Bonds, Foreign Exchange, and even Futures and Commodities. Usually, when a company is well established, it loses its competitive edge. Not so with Interactive Brokers

Interactive Brokers Trading Platform

Interactive Brokers has a genuinely outstanding trading platform based on Trader Workstation (TWS). It is free to download and use as a client, and it is the single place to trade any and every one of the vehicles on offer from IB. It caters to everything Stocks, Options, Futures, Forex, Bonds, Mutual Funds & ETFs.

Interactive Brokers Trader Workstation TWS
Interactive Brokers Trader Workstation TWS

Not only that but there are also a considerable number of advanced add-on tools that plug into TWS, such as:

  • ChartTrader – for trading directly from charts.
  • Continuous Futures – for commodity futures scanning and analysis.
  • DepthTrader – for in-depth analysis of market liquidity.
  • OptionTrader – deeper Options Analysis with specific Options strategies.
  • ProbabilityLab – to test the Probability Distribution of a particular trade
  • Portfolio Manager – for backtesting.

In total, there are 27 different advanced trading tools to suit every possible approach to the market.

Backtesting With Interactive Brokers’ Portfolio Manager

The “Portfolio Manager” tool within the powerful Trader Workstation (TWS) platform is well designed and easy to use. It is designed to help portfolio managers balance and manage a portfolio of stocks. Most portfolio managers are not buying and selling shares based on technical indicators like MACD, RSI, or Moving Averages; they are buying and selling based on the fundamentals of a particular company. This is reflected in the unique parameters available.

The Best Fundamental Backtester - Interactive Brokers
The Best Fundamental Backtester Interactive Brokers

You can choose a portfolio to backtest based on nearly all critical fundamentals, such as P/E, EPS growth, and even Analyst ratings. It is unique and powerful. I enjoyed setting up my portfolio and testing the different scenarios, such as buying low P/E stocks with high analyst ratings from Zacks or high EPS growth stocks with small insider ownership.

Interactive Brokers are a truly unique broker with arguably the most robust portfolio of tools in the industry. I am a big fan of TWS and interactive brokers; I recently moved my account from TD Ameritrade to IB.

Configuring Backtesting With Interactive Brokers

In this basic backtest, I selected stocks between $5 and $500 and a low price-earnings ratio (P/E) or between 5 & 20. I used 128% leverage on my long trades and 50% on short trades and only targeted the technology stocks on the S&P500.

Configuring A IB Backtest With TWS Portfolio Manager
Configuring A IB Backtest With TWS Portfolio Manager

Below you can see the “Add Additional Filters” dropdown menu, where you can consider and test a wealth of factors.

The testing worked out positively (as you can see from the image above), beating the market by 31%, but mostly because of the leverage factor, which, of course, introduces increased risk.

It is a positive playground to test your wildest hypotheses against reality regarding investing rules. Value investors take note; this is a great tool.

IB Backtesting Video

Interactive Brokers (IB) Backtesting Summary

IB is a very high-quality company with the best research included for free in your account; the wealth of tools available is astounding. I like Portfolio Manager” because it offers something different to everyone else, backtesting and investment management based on the company fundamentals. Portfolio rebalancing and management with automated buying and selling are all included in the package for free, a world-class solution from an outstanding broker.

Open An Account With IB Read the Full Interactive Brokers Review

 


Stock Market Investing Training - Liberated Stock Trader Pro

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★ 16 Hours of Video Lessons + eBook ★
★ Complete Fundamental Stock Analysis Lessons ★
★ 2 Powerful Value Investing Strategies ★
★ 4 Dividend/Income Investing Strategies ★
★ Professional Grade Stock Chart Technical Analysis Lessons ★

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9. Tradestation: Great Chart Backtesting For Tradestation Brokerage Clients

TradeStation is a leading brokerage house with excellent execution and reasonable commissions, but did you know they have great backtesting software. TradeStation offers enough software and broker integration to stand tall with the other vendors.

TradeStation Rating 3.8/5.0
⚡ Features Low-Cost Stock & Option Trades Globally
🏆 Backtesting Features Point & Click Backtesting & Auto-Trading
🎯 Best for US Traders
💰 Cost Per Stock Trade $1

Pros

  • Powerful Charting Tools
  • Good Algo and Power Tools
  • Free Software for Brokerage Clients
  • Broker Integration

Cons

  • $1 per Trade

TradeStation has real-time news, which is an excellent service but fails to score top marks because it does not provide market commentary or a chat community. But do you need that? Some people do; it’s a factor to consider. TradeStation offers TradeStation University a huge wealth of online videos to help you master their trading platform.

They also have a morning briefing that you can tune into online, and their selection of professional analysts will give an opinion on the market action and potential strategies.TradeStation has also cultivated a systems and strategies marketplace called the “Strategy Network,” where you can purchase stock market systems from an ecosystem of vendors or even contract someone to develop your system for you in the “Easy Language” code.

TradeStation’s Backtesting Software

TradeStation’s unique proposition lets you create powerful technical backtesting scenarios directly from the charts. No need for programming or script development; it is straightforward. Select your chart, timeframe, and indicators and then plug in what parameters you want for the buy and sell orders. Long and short trades are all covered.

The beauty of it all is that you can turn the hypothetical system into an automated trading system with algorithmic trading applications because this is a broker-integrated solution.

TradeStation - In-Built Backtesting On Charts
TradeStation In-Built Backtesting On Charts

It is called TradeStation because it is the place where you can build a technical chart-based system and execute the system automatically.

Read the Full TradeStation Review

 


10. Quantshare: Low Price, Broker Agnostic Backtesting, But Challenging to Use

Recommended for Quantitative Analysts who develop powerful automated systems and value a huge selection of shared user-generated ideas, but you need to be able to code.

QuantShare Rating 3.5/5.0
⚡ Features Advanced Charts, Scanning
🏆 Backtesting Features Customized for Quants & Programming Skills
🎯 Best for Stock Traders
♲ Subscription Lifetime 1 Payment
💰 Price $245-$595/mo
💻 OS PC
🎮 Trial None
🌎 Region Global

Pros

  • For Quants Wanting To Automate Backtesting
  • Super Cheap
  • Active Community
  • Very Good Backtesting

Cons

  • Programming Knowledge Required
  • Poor Interface

QuantShare was new to me, and I was surprised by the feature set. Do you backtest, forecast, and program algorithms to get an edge in the market? Are you a hardcore programmer and mathematician, then QuantShare is for you?

Stock Systems and Backtesting

QuantShare specializes, as the name suggests, in allowing Quantitative Analysts the ability to Share stock systems. They have a huge systems marketplace with a lot of accessible content that you can test and use. If you have a programmatic mind, you can implement and test an endless list of possibilities.

They do also offer Point & Click implementation of systems. What is great is they also have Artificial Intelligence integrations via the AI Optimizer, allowing the system to combine different rules to see which rules work best together. They also have powerful prediction models using Neural Networks. This is an advanced software for those with programming skills.

QuantShare is difficult to use, and the interface requires serious development effort. The learning curve will take a time investment on your part.

QuantShare Recommended Software

 

Visit QuantShare

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Summary: Stock Backtesting Software Review

Trade Ideas deploys powerful backtesting software with artificial intelligence systems to give you a profitable edge in the stock market and is well worth the subscription. Our rigorous testing process chose MetaStock for the most powerful backtesting and innovative forecasting platform.

TradingView offers global market access, the biggest trading social community globally, and an intelligent and effective backtesting solution to individual stock testing and reporting. TrendSpider is our winner for innovation and the hottest new entrant into the market.

Frequently Asked Questions

Which platform is best for backtesting?

For fully automated AI-driven backtesting Trade Ideas is the best. If you want to great your own unique trading strategies both MetaStock and TradingView are the best backtesting platforms.

Is there any free backtesting software?

From my testing, the best free backtesting software is TradingView,  which allows users of their free basic plan to utilize the powerful Pine script strategy testing environment.

How reliable is TradingView's backtesting?

Based on my backtesting and system development for the MOSES system, TradingView's backtesting is extremely reliables and accurate. TradingView also provides on-chart entry and exit signals so you can prove the backtesting reliability.


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