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how do demo accounts differ from real live trading?

  • #81
  • Dec 1, 2017 10:26am Dec 1, 2017 10:26am
Quoting Majeeda
{quote} Yes, the main purpose of demo is learning! I see, learning is a long term process! But, a number of new traders try to learning everything in a day, but it takes time to learn technical and fundamental analysis.
Demo accounts have another major purpose and that's testing of strategies. You can be an experienced trader and still make use of the demo to do that.
  • #82
  • May 22, 2018 7:10am May 22, 2018 7:10am
Quoting mlawson71
{quote} Demo accounts have another major purpose and that's testing of strategies. You can be an experienced trader and still make use of the demo to do that.

what you think the experience we take from demo practically works in a live account ?
  • #83
  • May 22, 2018 9:18am May 22, 2018 9:18am
Quoting NathanAstel
{quote} what you think the experience we take from demo practically works in a live account ?
Basically, what works and what doesn't? Which signals are good for opening positions and which are less trustworthy? That applies especially to strategies which don't involve scalping, because there may be major differences between live and demo accounts when it comes to execution speeds and spread sizes.
  • #84
  • May 23, 2018 5:46am May 23, 2018 5:46am
Fully agree with mlawson71. You could be experienced professional trader and still benefit from demo testing.
  • #85
  • May 23, 2018 7:39am May 23, 2018 7:39am
Quoting UlliC
Fully agree with mlawson71. You could be experienced professional trader and still benefit from demo testing.
Thank you! I think people should never forget demo trading is there as an option. It's always good to sometimes go back to it.
  • #86
  • May 24, 2018 3:54am May 24, 2018 3:54am
If you have been trading a demo account successfully for 2/3 years why don't you try yourself out on a live account. Why don't you open a small account and try yourself out? For me I trade with money I'm comfortable losing it, so if I lose I wont't feel that much pain.
  • #87
  • May 24, 2018 12:37pm May 24, 2018 12:37pm
Go live with an amount that you are comfortable to lose.

You would be better at managing your emotions which would turn you into a great trader in the near future.
  • #88
  • May 24, 2018 3:39pm May 24, 2018 3:39pm
My 2 Cents. I have been trading manually FX since 2006 until 2015. Demo is good for manual and automated strategy development but a complete waste of time for discretionary trading. For automated systems, it is a worth a gold mine as I do all my portfolio modelling in demo and will be using demo accounts forever based on the following facts and requirements I have set for myself.

 

  1. Demo Price feed are very close to live pricing but don't blindly trust demo feeds. From time to time they go funky so I run a price feed compare script to ensure my broker is not playing games.
  2. In Demo (and in Live) strategies, I always consider 5times the trading costs in order for a position to be considered in profit. This is a must because demo is just demo with no live market conditions to affect the trade outcome. In forward testing, our first and primary goal is the recover trading costs to push us into a zero sum game from a negative sum game. I use 10 times the cost of commissions and swaps to even consider a trade to be in profit. If you do this, I can gaurantee your trading outcome in demo will be close to Live !
  3. True...there is no emotions involved in demo and same should be true in automated strategies also. That is why I will remain a demo trader for the rest of my life !
  4. Max Slippage allowed... I use a high number in demo (reflected in my TradingCostMultiple) to reflect real-live conditions in a demo trading environment
  5. Spread Widening controls.... this should also be in place to relate to real live liquidity conditions as part of your demo strategy. Most EAs check for spreads only during open of trades. We must also check during closing of trades too !
  6. ALWAYS check the broker server time between live and demo accounts.
  7. Always load history in live and then copy them in demo. This is one way of ensuring the backtests are done on live pricing.
  8. I like to run demo and live in parallel so study the price difference and you will soon know where the weak spots are.
  9. Avoid running demo strategies in the same account for too long.... I open demo accounts every week and I wont get into the reasons w

Hope this helps.

Staying in my lane...
  • #89
  • Jun 18, 2018 5:12am Jun 18, 2018 5:12am
Quoting dvid
If you have been trading a demo account successfully for 2/3 years why don't you try yourself out on a live account. Why don't you open a small account and try yourself out? For me I trade with money I'm comfortable losing it, so if I lose I wont't feel that much pain.
I have never found at any guys in this market place who trade in demo consistently with 2 years, most of us take this trading place as a casino and like to trade at random for all time without analysis. As a result found nothing from here even though this is the master place to become a knowledgeable trader.
  • #90
  • Jun 18, 2018 5:49am Jun 18, 2018 5:49am
In demo you will go unnoticed by all the beasts in the market (algos..) that feed off pray like you..
Return To Disorder
  • #91
  • Jun 18, 2018 7:04am Jun 18, 2018 7:04am
do you trade in a demo account or not , its not a big deal , actually demo is the best place to become a good trader with real knowledge, but there is no real money in here . so we cant believe the importance of this trading place.
  • #92
  • Jun 19, 2018 1:50pm Jun 19, 2018 1:50pm
Demo accounts differ from real live trading in the same way punching a punch bag differs from punching someone in a fight.

Skin in the game - makes all the difference.
Trump is a total Cunt. Anyone who thinks Trump is great, is also a Cunt.
  • #93
  • Jun 20, 2018 10:12am Jun 20, 2018 10:12am
That's true, but boxers don't skip training with a punching bag even though they have sparring partners too.
  • #94
  • Jun 20, 2018 12:08pm Jun 20, 2018 12:08pm
Quoting mlawson71
That's true, but boxers don't skip training with a punching bag even though they have sparring partners too.
Well, allowing for the possibility your intent is humorous, you're still confusing a sparing partner with a bar brawl - the two are very different.

Or were you suggesting once you're trading live you'll still want/need to trade demo? If so, that's lost on me.
Trump is a total Cunt. Anyone who thinks Trump is great, is also a Cunt.
  • #95
  • Jun 21, 2018 9:28am Jun 21, 2018 9:28am
Quoting TheBramble
{quote} Well, allowing for the possibility your intent is humorous, you're still confusing a sparing partner with a bar brawl - the two are very different. Or were you suggesting once you're trading live you'll still want/need to trade demo? If so, that's lost on me.
I think that demo is always useful. I definitely won't be testing a strategy I just learned on a live account.
  • #96
  • Jun 21, 2018 3:11pm Jun 21, 2018 3:11pm
Quoting mlawson71
{quote} I think that demo is always useful. I definitely won't be testing a strategy I just learned on a live account.
Seriously?

So you know the difference in feel between pretend money and your own REAL money - yet you still test in a sand pit scenario? I think that's a big mistake. Just my take.

Even if you scale right down to insignificant position size (whatever that is for you) you'll still behave a lot differently even (especially?) with a new strat than you would with a demo account.

The emotions that come with trading even a small position size are qualitatively and quantitatively different to demo. I don't subscribe to the 'trading is 80% psychology 20% strategy' view, but psychology is certainly more than 0%.

If you have no skin in the game you're not really playing.
Trump is a total Cunt. Anyone who thinks Trump is great, is also a Cunt.
  • #97
  • Jun 22, 2018 8:26am Jun 22, 2018 8:26am
I find that major psychological difference when on demo and when real trading, heart beat like crazy when live account etc.
  • #98
  • Jun 22, 2018 9:23am Jun 22, 2018 9:23am
Quoting TheBramble
{quote} Seriously? So you know the difference in feel between pretend money and your own REAL money - yet you still test in a sand pit scenario? I think that's a big mistake. Just my take. Even if you scale right down to insignificant position size (whatever that is for you) you'll still behave a lot differently even (especially?) with a new strat than you would with a demo account. The emotions that come with trading even a small position size are qualitatively and quantitatively different to demo. I don't subscribe to the 'trading is 80% psychology...
I do like experimenting with different lot sizes, as long as they're not bigger than what I can afford on a live account. Also, different strategies have different rates of success, if the one I am testing is more or less a failure I don't see why I should lose money even if the position was miniscule. It's a matter of principle, even if the loss is measured in mere cents. But that's just my personal perspective. You obviously have your own, and if it works for you that's all that matters.
  • #99
  • Aug 7, 2018 6:59am Aug 7, 2018 6:59am
There is no difference between demo accounts and live trading accounts. Trading conditions are same so that you can practice your trading skills and strategies comfortably. The only difference is the involvement of REAL money in live trading. So there might be some difference in the way you approach trading on both kinds of accounts. The fear/hesitation element will be stronger in live trading. That is why it is said that you should trade on demo just as would trade on live account.
  • #100
  • Aug 9, 2018 1:08am Aug 9, 2018 1:08am
Am an algo trader and from experience when it comes to trading automated systems there too much difference between demo and live especially in the field of how quick your orders are placed, demo orders are filled quicker compared to live accounts thats just my opinion and experience from testing about 4 different brokers.secondly it very hard to find requotes on a demo account compared to that of a live account when you use the same broker and trade the same ea you find the demo to places apparently more trades than the live account after years of trading there same system with the same parameters
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