Some important things you should think about before you begin to back-test the system include;
- Does the system have a stop and profit target?
- Does the system have any money management rules?
- Are any of the indicators likely to ‘repaint’ causing your back-test results to be invalid?
- Does the system enter trades during a news release?

It is possible to back-test a Forex trading strategy with a currency trading demo account. However, if you are testing a strategy with time periods less than 1 day (e.g. 15 min, 1 hour, 4 hour) you may find that many Forex brokers provide limited historical data which will limit how much back-testing you can do. If you wish to do a large amount of back-testing you may need to find a source you can download historical data from that can be imported into a platform such as MetaTrader 4 or Amibroker.

To test your ability to apply the rules of the strategy it is a good idea to forward test and/or test using a simulator. Using a Forex simulator such as Forex Tester you can replay the past as if it were happening now and enter/exit trades to test your skills.