# Forex Backtesting

> Forex backtesting turns currency strategy rules into measurable historical results.

Canonical URL: https://backtest.click/learn/forex-backtesting/
App URL: https://backtest.click/
Last updated: 2026-07-08

## Definition

Forex backtesting simulates currency pair strategies with timeframe, entry rules, exit rules, trade direction, position size, stop loss, take profit, and realistic costs.

## Example Setup

A simple forex baseline could test EUR/USD or GBP/USD on 1H candles for 3 months, long and short direction, an RSI recovery rule with EMA trend filter, 1% stop loss, 2% take profit, and realistic slippage.

## What To Inspect

Review whether losses happen during sideways periods, trend reversals, or volatility spikes. Compare long-only, short-only, and both-direction variants separately.

## Risk Note

Forex backtests are historical simulations and do not include every live execution condition.