Top 12 Backtesting Software for NSE Stocks & Options in India

Trading stocks and options involve real money and hence any wrong decision can lead to huge losses. Due to this risk, traders use buying and selling strategies based on different criteria and rules aligning with market conditions and goals. They test these strategies before diving into the actual market.

Initially, traders used computer screens to visualize trade charts and test potential trading strategies. Moreover, with advancements in technology, many vendors have developed stock backtesting software to test potential trading strategies using historical data. Also, the test results help modify the trading strategy to maximize gains.

However, different backtesting software vary depending on the trading experience level, budget, nationality, system available, and other such factors. Here, this article covers the list of backtesting software suitable for trading NSE stocks and options in India. You can also leverage this software for backtesting trading strategies.

What Is Stock Backtesting?

Stock backtesting is a process that tests if a chosen set of fundamental or technical criteria for trading stocks has been profitable in the past.

Moreover, you get detailed reports consisting of executed trades, drawdown, risk-reward ratio, compounded return, winning percentage, and more to check the effectiveness of your trading strategy.

These reports serve as a good estimate of the performance of your trading strategy and ensure that you implement correct strategies with real money so that you can make informed decisions.

What is Option Backtesting?

Option backtesting is very similar to stock backtesting, except that it tests a chosen set of criteria for trading options. Like with stock backtesting, you also get detailed reports consisting of executed trades, drawdown, risk-reward ratio, compounded return, winning percentage, and more.

Options backtesting is a great way to estimate the performance of your option trading strategy and ensure that you implement the correct strategies with real money so that you can make informed decisions. To test option strategy, you can use reliable testing backtesting software to find the best option trading strategy for you.

What is Forex Backtesting?

Forex backtesting is a kind of trading strategy that is based upon historical data where the traders utilize past data to find out how a strategy would have performed.

It is done using backtesting software where a set of various technical rules are applied to the historical data of price. After that, a detailed analysis is done of the returns that a Forex strategy might have generated during a particular period.

What is Backtesting Software?

Backtesting software tests the effectiveness of a trading or investment strategy employed in the past and helps estimate its future performance. Also, based on the backtesting code in the software, simulation runs on a trading strategy using historical data from financial instruments like options, stocks, and more.

Moreover, the returns on the model are tested across different market conditions and datasets. Additionally, institutional investors and money managers can change different trading strategy variables and compare the viability of trading strategies to select the one that works best on historical data.

Also, with this, traders can get information on potential net profit/loss, market exposure, volatility, risk-adjusted return, and return without risking capital.

Suggested Read: Best Technical Analysis Software for Stock Trading in India

12 Best Free Backtesting Software for Effective Trading Strategy in 2024

By using the right option and stock backtesting software, traders can save time and money. Moreover, the use of software simplifies the backtesting process and provides detailed reports. Some of the best options are discussed next.

• TradingView

TradingView Free Trial: The software offers a free trial of the paid edition for 30 days.

TradingView strategy tester is a web-based platform, which is popular among NSE traders and investors for forex and stock backtesting.

It is one of the best software for trading in India as it provides backtesting reports that show the profit performance of trading strategy with parameters like percent profitable trades, net profit, charts on trade performance, number of trades, buy and hold return, etc.

Also, charts provide a visual reference for all trades for easy understanding. You can also vary strategy parameters to observe the impact of changes.

TradingView Features

• Market replay feature to view day-wise charts in the timeline
• Pine Script for strategy implementation
• Strategy tester manual backtesting
• Export Strategy data to CSV
• Publish ideas and scripts

TradingView BackTesting Software Features:

• Pine Script engine for flexible and powerful chart backtesting
• Detailed back testing reports and analytics

How to Backtest on TradingView?

• Select a market and timeframe
• Access the tester of strategy
• Configure your strategy tester
• Run the strategy backtest
• Analyze the testing results

TradingView Pricing:  You can use it as free backtesting software with limited features. However, there are three paid plans- Pro, Pro+, Premium with more indicators, charts, and views for backtesting. Pricing for the Pro version starts at INR 1,245.92/ month.

Pros and Cons of TradingView

• MetaTrader 5

MetaTrader 5 Free Trial: The stock analysis software doesn’t offer any free trial. However, Free demo account is available for individual users.

With MetaTrader Strategy Tester, you can import NSE stock data and backtest your strategies based on historical quotes of currencies, stocks and other assets.

Also, the Metatrader can be used for backtesting trading strategies with default/custom indicators or those from automated trading systems called expert advisors.

Moreover, backtesting results provide detailed statistics like drawdown, balance, expected payoff, profit factor (all profits/ all losses), etc.

MetaTrader 5 Features

• Custom date option to use specific historical data for backtesting
• Testing modes for custom speed/ quality ratio
• Also, helps choose best input parameters for maximum profit and minimum risk
• 2D/ 3D tools to visually analyze optimization results
• MQL5 cloud network to speed up computations

MetaTrader 5 Backtesting Features: Custom manual back testing options

How to Backtest on MetaTrader 5?

• Open its strategy tester
• Choose the currency pair and expert advisor
• Configure the testing metrics and run the backtest
• Analyze the results and optimize your strategies accordingly

MetaTrader 5 Price: Brokers can choose from entry, standard, and enterprise licenses. However, pricing is available on its official website.

Pros and Cons of MetaTrader 5

Suggested Read: Best Professional Options Trading Software in India

• MetaStock

MetaStock Free Trial: You can get it as free backtesting software for the first two months.

MetaStock backtesting platform enables traders to backtest how well an idea, theory, or strategy previously performed. Moreover, you can test different variables using artificial intelligence (AI). Additionally, it provides backtesting reports with profits, draw-down, ROI and other parameters.

Also, by clicking on any buy or sell trade, you can view size, background, profit or loss, and more. The forecast feature enables you to predict future price action from historical data. It is one of the best software for trading in India based on artificial intelligence.

MetaStock Features

• Power Console to access 58 systems for backtesting
• Also, supports one-click backtesting of the entire market
• Custom interval selection for backtesting
• 67 event recognizers/ custom patterns for forecasting
• Real-time data with Refinitiv Xenith News service integration

MetaStock Backtesting Features

• AI enabled backtesting
• Backtesting Upto 300 Charts, volume indicator and price

How to Backtest on MetaStock?

• Open the power console and select the system test
• Choose from 58 various systems you want to test
• Start the backtest and results will come after 60 seconds
• Check the list of all buying and selling trades backtested by the strategy

MetaStock Pricing: Pricing for MetaStock starts at INR 4450.665 per month.

Pros and Cons of MetaStock

• AmiBroker

AmiBroker Free Trial: A 30-day free demo version of AmiBroker backtesting is available.

AmiBroker backtesting software enables traders to get the simulated portfolio level trades list based on the trading rules they prefer. Also, the user must enter the formula for generating buy/sell/short/cover signals for trading rules.

Moreover, you can change different settings for backtesting like maximum loss and profit target stops, amount of commission, type of trades, portfolio size, price fields, etc.

AmiBroker Features

• Custom backtesting facility
• Also offers several backtest modes, including regular raw and rotational trading mode
• Optimization in Analysis Window

AmiBroker Backtesting Features

• AFL scripting host for advanced formula writers
• Margin Account and position sizing

How to Backtest on AmiBroker?

• Select the Back Test option in the automatic analysis window
• Type the formula for trading rules
• Once done, the formula’s symbols are analyzed as per rules
• After that, it will provide a simulated trades list
• Click on the Cancel button to stop backtesting

AmiBroker Pricing: Standard Edition starts approximately at INR 24,919 for single user licenses.

Pros and Cons of AmiBroker

• NinjaTrader 8

NinjaTrader Free Trial: NinjaTrader doesn’t offer any free trials.

NinjaTrader Strategy Analyzer enables traders to use historical trading data to identify profit and loss attributes of their strategy to optimize performance in live market conditions.

Moreover, depending on the report style selected, you can view statistics like gross profit/ loss, total net profit, profit factor, number of trades, maximum drawdown, and more.

NinjaTrader Features

• Price-over-time charts
• Data from IQFeed, text files, Google Finance, eSignal, Yahoo finance, etc.
• Optimization to fine-tune input parameters of strategies
• 2D/ 3D optimization graphs

NinjaTrader Backtesting Features

• Pre-defined sample strategies
• Custom Strategy

How to Backtest on NinjaTrader 8?

• Install the Trade Backtest Indicator in NinjaTrader 8
• Add Improve Your Trade backtest Indicator to the chart
• Mark all the trades on the chart with UP and Down arrows
• Upload all trades to the Improve Your Trade Journal section
• Improve the trade and analyze the backtest trading performance

NinjaTrader Pricing: There is a free plan that lacks automated backtesting. However, this backtesting software’s paid plans start at INR 8,249.92/ month.

Pros and Cons of NinjaTrader 8

Suggested Read: Top Nifty Buy Sell Signal Software for Indian Stock Market

• TradeStation

TradeStation Trial: TradeStation doesn’t offer any free trial.

TradeStation strategy tester enables day traders to analyze their trade ideas and methods for stocks, options, and futures using a large historical market database.

Additionally, the performance summary provides statistics for total net profit, the total number of trades, maximum drawdown, the annual rate of return, etc.

TradeStation Features

• Look-Inside-Bar backtesting for finer data intervals
• Weekly/Monthly charts
• Parameter-based optimization process
• Also, offers strategy automation for monitoring positions and orders

TradeStation Backtesting Features

• Auto Trading
• Algorithmic trading application

How to Backtest on TradeStation?

• Open a new chart and insert your trading strategy
• Configure the settings for trading strategy
• Select done and trading results will be displayed
• You can view the results in Strategy Performance Report

TradeStation Pricing: It is free backtesting website for TradeStation brokerage clients. For opening an account, you can add any deposit amount in TS Go plan and at least INR 1,51,749 in TS Select plan.

However, there is no commission for stocks and ETFs. Pricing starts at the rate of INR 37.94 per contract for stock options.

Pros and Cons of TradeStation

• Zerodha Streak

Zerodha Free Trial: Zerodha offers a 7-day free trial with 50 backtests per day.

Streak Zerodha stock backtesting enables traders to build, test, and deploy strategies for stocks and cryptocurrencies without programming. Once you create or copy a strategy, you can generate performance reports for several stocks in one click.

Additionally, the metrics in results include average loss per winning trade, average gain per winning trade, profit and loss curve, maximum drawdown, maximum losses/gains, among others.

Zerodha Streak Features

• Backtesting parameters like initial capital, backtest period, candle interval, stop loss percentage, and more.
• Customizable backtested sample algos for optimization
• Also, supports short-term/ long-term trend direction in real time

Streak Zerodha Backtesting Software Features

• Individual scrip performance details on backtest page
• Multi-time frame

How to Backtest on Zerodha Streak?

• Select the strategy backtest parameters
• Once done, choose the backtest period
• Next, select ‘Test Strategies’ option and run the backtest
• All the backtest results will be represented in the form of transactions tables

Zerodha Streak Pricing: Regular plan starts at INR 690 + GST per month and allows 300 backtests per day.

Pros and Cons of Zerodha Streak

• TradeBrains

TradeBrain Free Trial: It doesn’t offer free trials.

TradeBrains portal helps traders create backtesting strategies and implement them. The reports include metrics like portfolio growth, CAGR, absolute returns, YOY/MOM returns on portfolio stocks, and so on.

You can also stay updated with information about the stock of different Indian companies listed at NSE and BSE.

TradeBrains Features

• Risk and return analysis for each portfolio asset
• Superstar Portfolio
• Stock themes and buckets
• DCF Analysis

TradeBrains BackTesting Features

• Multiple backtesting parameters
• Analysis segment for detailed backtesting results

How to Backtest on TradeBrains?

• To perform Portfolio Backtesting, follow these steps:
• Go to the Trade Brains Portal
• Choose “Portfolio Backtesting” in the tool’s menu
• Type the start date, end date, initial amount, etc.
• After that, allocate funds in various stocks to create your portfolio
• Lastly, click on “Backtest” and the backtesting will be done.

TradeBrains Pricing: It offers free tool offers a free plan with one 1 backtest/day. However, paid plans start at INR 1,499 / month.

Pros and Cons of of TradeBrains

• Interactive Brokers

Interactive Brokers Free Trial: It doesn’t offer free trial.

Interactive Brokers platform helps portfolio managers to do backtesting based on company fundamentals like the Acid test, P/E ratio, EPS growth, top buy-side Analyst Ratings, etc. With the Portfolio Manager tool, you can build and backtest strategies against selected benchmarks in detail.

It is one of the best backtesting software that also allows optimizing the weight of positions based on the highest Sharpe ratio (a measure of risk-adjusted return), lowest variance, highest return, and more. Additionally, for options, you can view potential profit and loss and risk/return ratio in Options Strategy Lab.

Interactive Brokers Features

• Automatic saving of modifications in investment rules as hypothetical strategies
• Additionally, offers 60+ criteria to sort potential stock investments
• Strategy performance tracking
• Automatic notifications for portfolio rebalancing
• Advanced API technology

Interactive Brokers Backtesting Features: Fundamental backtesting with portfolio manager.

How to Backtest on Interactive Brokers?

• Create your trading strategy and configure all settings
• Configure all the metrics included in the strategy
• Once done, click on ‘Run Backtest’ to run the backtest
• Then, you can analyze the provided results

Interactive Brokers Price: It is a free backtesting website for IB clients. However, you can sign up for a free trial account on the platform. Pricing is available on request on its official website.

Pros and Cons of Interactive Brokers

Suggested Read: Best Technical Stock Screeners in India for Day Trading

• TradersCockpit

TradersCockpit Free Trial: There is no free trial for TradersCockpit.

TradersCockpit is used by traders, investors, and brokerage firms. Also, the strategy Labs tool helps in building and backtesting strategies with different indicators for NSE stocks.

It supports large volumes of historical data to check how a strategy works in the future. Additionally, the reports include backtesting dates, average trades, total returns, cumulative percentage gain/loss, and many other metrics.

TradersCockpit Features

• EOD and Multi-frame strategies
• Detailed analysis charts
• Options/TA Workshops
• Also, provides preset dashboard and templates
• Optimized versions

TradersCockpit Backtesting Features: EOD and Multi-frame strategies

How to Backtest on TradersCockpit?

• Sign in with your credentials and select trading indicators
• Add details about strategy and configure the settings
• Once done, the strategy will be tested, and the results will be provided
• The results will be provided in the form of backtesting reports

TradersCockpit Price: Its paid plan starts from INR 7500 for three months.

Pros and Cons of TradersCockpit

Suggested Read: Top Swing Trading Apps in India

• StockMock

StockMock Free Trial: There is no free trail. However, you will get 20 StockMock free credits as soon as you sign up.

StockMock is an online platform that helps traders and investors test backtest option strategy. Moreover, you can backtest strategies with different indicators for NSE stocks. Additionally, the reports include backtesting dates, average trades, total returns, cumulative percentage gain/loss, and many other metrics.

StockMock Features

• StockMock provides Bank Nifty data from 2 Jan 2017
• Nifty data is available from 15 Feb 2019
• Access simulator data from 1 Jan 2021

StockMock Option Backtesting Features

• EOD and Multi-frame strategies
• Detailed analysis charts
• Multiple Filtering Options
• Optimized versions

How to Backtest on StockMock?

• Add the strategy backtesting details
• Choose the trading type: Intraday trading or positional trading
• Select the data based on weeks and months to backtest strategy on a particular date
• Once done, click on the Start Backtesting option
• Lastly, all backtesting results will be displayed that you save as PDF or CSV files.

StockMock Pricing: StockMock offers a ₹700 credit plan that offers 50 credits for a month.

Pros and Cons of StockMock

• Tradewell

Free Trial: Tradewell offers a free trial with some basic toolkits and features

Tradewell is innovative, no-code backtesting software for traders of all skill levels. Also, you may simply design and test trading strategies using its intuitive interface without the need for coding. Moreover, traders can see how their strategies operate in real-time using different market indications and simulated results.

In fact, Tradewell is a great tool for traders wishing to enhance their tactics and make some good gains, with a large wide choice of equities to trade and the ability to figure out odds.

Tradewell Features

• Easily backtest with its simple UI and No-code platform
• Also, provides tutorials for basic to advanced backtesting
• Promotes a wide variety of assets for backtesting
• Calculate odd probabilities before you make a trade

Tradewell Backtesting Features

• Offers backtesting with previous 5, 20 and 50 years of data.
• Additionally, provides a summary table to confirm or negate your theory based on your signal statistics.
• Filter all the trading signals and data that you want to backtest.

How to Backtest on Tradewell?

• Create a trading strategy and specify its rules which could be translated into code.
• Utilize the historical data for simulating strategy performance.
• Evaluate the strategy viability by analyzing simulation results.

Tradewell Pricing: It offers a free plan. Tradewell pricing starts approximately from INR 2,499.55 per month.

Pros and Cons of Tradewell

Things to Consider Before Buying Backtesting Software for Organisation

A backtesting software must have a user-friendly interface and should provide statistical results to measure the strategy’s effectiveness.

• Language choices

Some option backtesting software do not require a lot of programming skills for custom backtesting, while others need users to understand the coding language completely.

Also, those without a tech background might find it a bit difficult and take time to learn software that requires programming knowledge like C, Java, or Python.

• Operating system support

You must check the compatibility of the backtesting software with your operating system. Moreover, while most back test trading strategies are web-based, some even offer Windows software and mobile apps for iOS/ Android for backtesting on the go.

• Trade execution

There are several ways to enter or exit a market. However, depending on your preference, you may choose the back testing software that offers manual, semi-automatic, and automatic trade execution. Only a few vendors provide automatic trade execution.

• Trading indicators

The back testing software must offer a wide range of indicators like Total Gain Loss Ratio, Total Return on Equity (ROE), Annualized ROE, Total Profit and Loss, Risk-Adjusted Returns, and Volatility. It is essential to understand the market direction before making any decision.

• Backtesting choices

To select the right market to trade in, you might want to backtest entire markets at once instead of just single equities or forex pairs. However, this feature is not available in many software options.

Also, some backtesting software only supports a single financial instrument. In fact, such software solutions are unsuitable for those who want support for multiple financial instruments.

• Optimization

Also, yhe backtesting software should support the easy creation and optimization of backtested strategies. Building a strategy should not be too time consuming for a beginner. Also, optimization is necessary to gain maximum profits.

Suggested Read: Best Technical Analysis Software for Stock Trading in India

Conclusion

If you want to be a successful trader, you must combine your trading knowledge with backtesting software to make the right decisions.

However, remember that the results are hypothetical and do not guarantee that the strategy would produce a similar outcome on actual implementation.

Backtesting software provides you with data but what you do to make your strategy effective depends on you.

Questions Related to Backtesting Software