Best Backtesting Software For Stocks & Options

Updated April 15, 2024

Are you planning on executing a specific trading strategy but are afraid of associated risks due to the ever-unpredictable financial markets? Backtesting software provides a haven for traders to test their strategies before engaging in actual trading.

These real-time rehearsal tools allow traders to run strategy-based simulations on past market data. 

A trader who wants to be successful doesn't go into trading mindlessly by trusting strategies that haven't been battle-tested. A perfect backtesting tool will determine if you will make profits or losses. Choosing the best backtesting software is vital for any trader who wants insights and data to optimize their strategy. 

#1

Trade Ideas

Trade Ideas is a financial technology company that provides traders with cutting-edge AI-driven stock scanning and alerting tools for generating trading ideas and making informed investment decisions.

4.5 of 5 stars

#2

TradingView

TradingView is a web-based platform offering advanced charting tools, social networking features, and real-time market data for traders and investors to analyze financial markets and make informed trading decisions.

4 of 5 stars

#3

Trendspider

TrendSpider is an automated technical analysis platform that empowers traders with powerful charting tools, intelligent automated analysis, and customizable alerts to optimize their trading strategies.

4 of 5 stars

#4

Finviz

Finviz is a stock market research platform that offers a comprehensive and user-friendly interface for analyzing market trends, screening stocks, and conducting technical analysis.

4 of 5 stars

#5

QuantConnect

QuantConnect is a cloud-based algorithmic trading platform that allows traders to develop, test, and deploy automated trading strategies using a wide range of financial data and coding languages.

4 of 5 stars

#6

Tickeron

Tickeron is an AI-powered trading platform that provides users with advanced technical analysis tools, trend predictions, and market insights to assist in making informed investment decisions.

4 of 5 stars

Top 6 Best Backtesting Software in 2024

After extensive research on multiple backtesting tools, here are our best picks;

1. Trade Ideas


Algorithmic trading is dominating the financial market space, and Trade Ideas is embracing it to give users perfect results. Trade Ideas combines its Oddsmaker backtesting functionality with its stock scanner to provide some of the best event-based stock alerts in the market. The OddsMaker is integrated with AI trading algorithms to provide quick but detailed historical data on a specified trade.

The Oddsmaker also allows you to optimize and refine your scans based on time of day, symbols, or stock price to analyze your strategies deeply. A reporting engine then analyses your trading strategy through different filters, enabling you to view subsets that work well and those that don't.

Trade Ideas helps you delve into the past performance of different trades to scrutinize your strategies' profitability and reliability. It also lets you determine the win rate, best pricing, profit margins, and compare the winners/losers. There's a color-coded calendar that shows daily metrics for individual trades. This makes it easy to define your position size, start equity, and add brokerage commission. 

This beginner-friendly software doesn't require one to know programming or scripting, unlike Trading View and QuantConnect. The software is also a time saver as you can run multiple backtests on your strategy and compare the results side-by-side. Likewise, you can leave Trade Ideas to do auto-trading (on select brokerages) for you based on your pre-defined parameters through the brokerage API.

Pros

  • Excellent backtesting charts
  • Advanced stock analyzing algorithms
  • Supports paper trading
  • Fully automated backtesting
  • Live daily trading

Cons

  • No mobile app
  • The interface is a bit complex

2. Trading View


Traders interested in social networking and accessing advanced charting tools will love Trading View. Unlike other backtesting software in this list, like TrendSpider, which has no mobile app, Trading View users can access its mobile-friendly and web-based interface. Through its social community, traders can share knowledge on trading strategies, market trends, and indicators. 

This cloud-based platform features multiple backtesting strategies and scripts. The exciting part is that most strategies are free, which explains why there are almost 200 million visits per month. But, users who want to access unique strategies, advanced screening and charting features must buy them. Additionally, the premium users get more customer support and access to real-time intraday data.

Trading View's intuitive design helps users view backtested data easily through its excellent charting system. The results are classified according to your strategy's performance (drawdown, net profit, profitable trades), past trading history, etc. 

The platform isn't beginner-friendly, as its advanced custom backtesting analysis requires one to know programming (Pine script). Don't worry if you lack programming knowledge; Trading View offers many educational resources. Pine Script helps you make custom backtests or indicators on specific data and time intervals, a unique feature you can't find on other stock backtesting tools.

A unique charting system allows users to access comprehensive tools. Primary users can view their strategy's results on a single chart, while premium subscribers can access up to 8 charts simultaneously. Either chart is customizable with technical indicators, symbols, and time frames. Users can adjust the time frames from a short period of just a minute to a long time of a month.

Pros

  • Active trading community
  • Customizable scripts and indicators
  • Excellent backtesting with Pine Script
  • Has a mobile app
  • Efficient charting system

Cons

  • Requires coding
  • Backtests only individual instruments and not entire markets

3. TrendSpider


TrendSpider is an ideal backtesting choice for beginner traders since it doesn't require coding, as its features are 100% visual-interface-based. Being chart-based, the site shows detailed data from 1 minute, daily, weekly, to monthly, so traders can customize technical buy/sell rules. Moreover, traders can easily combine different portfolio chart patterns, indicators, volume, price action trading signals, etc. 

It provides up to 20 years of backdated data on extensive intraday data and daily time frame of trading strategies. The backtested results are presented in charts, making it easier for traders to differentiate between winners and losers. They can also view extra information like profitability, automated trend lines, drawdown, and win rate. This helps them to evaluate their trading strategy model's accuracy and decide whether to use it in real-time trading. 

If a trader sees that a particular strategy they had adopted isn't good, they can have a chance of optimizing it. They can make the necessary changes and run the new strategy through TrendSpider again. However, you can only run the strategy on one ticker symbol at any given time. The software will display the current and previous results side-by-side so you can make the final decision.

Pros

  • Automated charting tools
  • Beginner-friendly
  • Point-and-click backtesting
  • No coding required
  • Side-by-side results comparison

Cons

  • Charts load slowly
  • No mobile app

4. Finviz


Finviz is a backtesting software that focuses on technical and fundamental aspects of stock trading. The technical filters include RSI, percentage change, moving averages, patterns volatility, and candlesticks. Fundamental filters analyze derived ratios or financials and can be filtered based on sales growth, institutional ownership, EPS growth, margins, etc. 

Once you have filtered your stocks according to the above filters, you can choose how you want to visualize their backtested results. Charts display technical patterns so you can quickly spot interesting trades. The valuation tab shows each ticker's derived ratios, while the overview tab shows basic data like sector or industry. Other filters include custom, snapshot, performance, and overview. 

The Finviz backtesting feature is offered to its elite premium users and provides 24 years of backtested data. Therefore, traders can get historical data on their strategies over the years and easily evaluate their performance. Though Finviz gives you a big picture of trades, ratios, and drawdowns, it fails to dig deeper into more details like Trading View or Trade Ideas. 

The Finviz platform has a user-friendly interface, thus allowing easy navigation for expert and beginner traders. There are various educational resources users can learn from to understand how to operate the software and get information on stock market trading. The resources include helpful articles, definitions of financial terms, and tutorials.

Pros

  • Advanced charts
  • Offers backtests and correlations
  • Insider trading information
  • Sector performance breakdown
  • Simple-to-use interface

Cons

  • You can't add indicators or save notes on the interactive charting feature

5. QuantConnect


QuantConnect ranks among the newest backtesting software for algorithmic and quantitative-based traders. It also includes volume data, price points, and fundamental data. Moreover, it's an excellent platform for traders who wish to test, develop, and execute customized trading strategies. Users can access seamless broker integration, multi-asset support, and high-fidelity backtesting. 

The software operates on an algorithmic open-source trading engine (LEAN) that offers traders a combination of power and flexibility. The LEAN engine can be run on-premise or in the cloud. Being open source, users can modify the engine if need be. 

 It's important to note that backtesting, trading, and creating strategies with QuantConnect require experience in coding. Through QuantConnect's backtesting, users get terabytes of financial data for free to backtest their strategy accurately, but the tests run with minimal coding. 

Users can directly execute live trades on the platform through provided broker integrations like TD Ameritrade and InteractiveBrokers. The parameter optimization tool enables traders to run hundreds and thousands of backtests to evaluate their trading strategies.

Pros

  • Provides real-time data feeds
  • Community-driven tools and libraries
  • Cloud-based customizable tools
  • Simplified backtesting
  • Large community

Cons

  • Steep learning curve as it needs coding knowledge

6. Tickeron


Tickeron is a unique trading platform that combines human intelligence, thanks to its community of traders and artificial intelligence. This enables users to compare human versus machine output. Tickeron incorporates AI to generate trading ideas with its pattern search engine. 

The AI-driven algorithms can spot up to 40 real-time stock chart patterns. You can choose your preferred pattern from the list, and the system will filter it further to match crypto, forex, or stocks. The patterns are divided into bearish patterns for short-term trades and bullish patterns for long-term trades. 

Tickeron's real-time pattern recognition is helpful for day or swing traders since it prioritizes market timing. Traders can select the best patterns from the suggestions in "Today's Top Ranked Patterns." Icon. This is a great time saver for traders looking for possible trade setups.

Still, on patterns, Tickeron has an AI confidence level to evaluate trade predictions and signals. The main pointers are a pattern's success rate, stock history, and current market direction. It doesn't end there; traders can have access to previous predictions to analyze if AI did a better job with the current performance of specific stocks. This level of clarity helps traders to make the right decisions.

Pros

  • User-friendly interface
  • Comprehensive educational resources
  • AI-backtested signals
  • AI-powered portfolio customization
  • Real-time trend recognition

Cons

  • Cant plot indicators
  • Limited custom charting

What is Backtesting?

Backtesting is a process that evaluates the performance of a given strategy in the past. Through backtesting, you can determine the possible past performance of your current strategy under certain market developments. The backtested results are likely indicators of the presumed future performance of your current trading strategy. 

Factors to Consider When Looking for Backtesting Software

- Historical data

An ideal backtesting software provides traders with historical data of 5 to 10 years or more. Detailed historical data analysis boosts user confidence in their strategy execution. However, backdated data can also show that your strategy isn't viable, and you should change it.

- Data visualizations

A good backtesting system should provide multiple reliable ways to visualize its results. Examples include entry/exit points on charts, drawdown, and line charts. Tables are also handy for displaying details of all trades you earlier executed during the backtest.

- Strategy optimization tools

Strategy optimization tools like algorithms help you figure out how and when you can execute your strategy to maximize profits. The tools also allow you to adjust your trading strategy to minimize losses, which limits your trading risk in general.

- Support for customizing strategies

Most backtesting software like Trading View and QuantConnect require one to be knowledgeable in coding to make customized strategies. Non-code backtesting software like TrendSpider is beginner-friendly, flexible and should allow you to tweak or test your trading strategy.

- Timeframe

The timeframe (Long-term or short-term) of your trading strategy will determine the period of historical data. Intraday strategies are backdated best against some months of price data. Swing trading may need several (1 to 10) years of price-backdated data, while investment strategies may need over 10 years for increased clarity.

- Price action

The price action of backtesting software varies mainly because of their services. Some base their emphasis only on volume data and price points. Others go a step further to analyze aspects like valuation metrics and growth. 

Traders must decide whether they want fundamental and price action/technical data analysis and choose a backtesting software that suits their needs. Some backtesting software only provides fundamental or technical analysis, while others provide both.

Conclusion

Backtesting software helps traders evaluate the profitability of their strategy and how they can optimize it to reduce risks. The above tools are the best backtesting software in the current financial markets. Traders should adopt a tool that suits their strategies to make well-informed trading decisions and stay on top of the game. 

Trade Ideas is our overall best backtesting software pick as it offers AI-based backtesting, an efficient charting system, permits auto trading, and supports paper trading. Trading View and QuantConnect are the best backtesting software with free versions. TrendSpider and Finviz are great tools for long-term investors since they backtest data for over 20 years.

Jerry Garnes

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About the Author

Jerry Garnes is a seasoned writer in personal finance. His informative and insightful pieces have been featured by esteemed platforms like Bankrate, The Street, and Business Insider. In addition to his financial expertise, Jerry is a passionate poet and musician with a deep love for nature.

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