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Is demo a step before real trading?

  • #381
  • Jul 13, 2019 1:50am Jul 13, 2019 1:50am
Quoting mlawson71
{quote} Sometimes a person wants just to test a theory or a strategy without any risk, demo is also useful for that purpose.
That`s for sure. Even experienced trader uses demo, so comfydesmond, you`re in the wrong way about it.
  • #382
  • Jul 13, 2019 9:39am Jul 13, 2019 9:39am
How often do you use demo? I do so at least once a day.
  • #383
  • Jul 14, 2019 6:41am Jul 14, 2019 6:41am
Quoting mlawson71
How often do you use demo? I do so at least once a day.
I do it in the "not trading" (aka learn when not to trade rule) times.. or when testing some new, specially high-leverage strategy or a new broker('s tool)...
One (additional) lack of the demo is the lack of tools, at least at my broker, they disabled some of the features, for example you do not see the OrderBook at demo. But hey, you could have LIVE open, check the tools there and place at DEMO

I would still suggest however, for a serious test, to play LIVE, with the smallest account possible... It can be done with CENTS at my broker... so that you are almost absolutely sure that you would win certain % profit almost no matter the trade size. Because that is the beauty of this (FX) markets... If you can make
10% return out of 100USD, you can make 10% return of 10k. USD... That is not so for example poker, when you have different game (players) at different/higher stakes/buy-in(s)... But for the ballpark, for real trading at least (forecasting) not some technological exploit, arbitrage etc... the DEMO could serve just fine... You could back-test or re-test in LIVE later, without wasting your bonus/salary/savings for example
Can you afford to take that chance?
  • #384
  • Jul 20, 2019 7:19am Jul 20, 2019 7:19am
Quoting mlawson71
How often do you use demo? I do so at least once a day.
If you`re asking me.. not every day but always when I want to test something new.
  • #385
  • Jul 20, 2019 10:15am Jul 20, 2019 10:15am
Quoting momo3HC
{quote} If you`re asking me.. not every day but always when I want to test something new.
My question was directed to you, yes. Sorry, I should have clarified.
  • #386
  • Jul 22, 2019 6:05pm Jul 22, 2019 6:05pm
Quoting sshhmmuueell
Hi opened a demo and would like to hear some comments {image}
Imo trading on demo has been one of the best things for me so far. I took an online forex course and for the last three months I've been trading on a demo account. This has allowed me to put some of the concepts I learned into practice without risking any real money. It has also allowed me time to develop a trading plan and sharpen my market analysis skills and more importantly focus on risk and money management. Definitely not trying to give advice, but i wouldn't have done it any other way.
  • #387
  • Jul 23, 2019 9:11am Jul 23, 2019 9:11am
Quoting momo3HC
{quote} If you`re asking me.. not every day but always when I want to test something new.
Same from me! Demo is the best way to update or testing any new strategy or system!
  • #388
  • Jul 23, 2019 10:38am Jul 23, 2019 10:38am
Quoting Adelhard
{quote} Same from me! Demo is the best way to update or testing any new strategy or system!
True. Why take on the risk to test it on a live account?
  • #389
  • Jul 24, 2019 6:40am Jul 24, 2019 6:40am
yes if you take the demo seriously.
Monkey See, Monkey Do
  • #390
  • Jul 24, 2019 9:46am Jul 24, 2019 9:46am
Quoting Adelhard
{quote} Same from me! Demo is the best way to update or testing any new strategy or system!
Demo is even THE ONLY way to test something new.
  • #391
  • Jul 24, 2019 11:00am Jul 24, 2019 11:00am
Quoting momo3HC
{quote} Demo is even THE ONLY way to test something new.
Well, one can test new strategies on a live account and skip the demo account test, but that is a really poor idea.
  • #392
  • Jul 25, 2019 7:43am Jul 25, 2019 7:43am
Demo is only useful when YOU KNOW what you are doing, not just testing for "fun" and without "discipline". You could also form your strategy through back-testing, which is more efficient for me by the way. Trade safe
  • #393
  • Jul 26, 2019 11:03am Jul 26, 2019 11:03am
Well, testing random ideas also hurt no one, as long as it's on demo.
  • #394
  • Jul 26, 2019 1:39pm Jul 26, 2019 1:39pm
Quoting TradeMinim
Demo is only useful when YOU KNOW what you are doing, not just testing for "fun" and without "discipline". You could also form your strategy through back-testing, which is more efficient for me by the way. Trade safe
I sorta agree. I would say demo has been useful for me in two ways.

  1. Experiment with a new trading concept (as long as it does not rely on the broker's order book)
  2. Feel out the market with short term trades in order to determine direction and time of longer term live account trades

The first item requires discipline and generally is not very "fun" but the second item doesn't require much discipline at all (other than committing to trading on a semi-regular basis) and is almost always fun for me.

careful not to step in a pile of it
  • #395
  • Jul 28, 2019 1:21am Jul 28, 2019 1:21am
Quoting momo3HC
{quote} Demo is even THE ONLY way to test something new.
No; it’s not the only one way; simulation is another way of testing any new strategy or system!
  • #396
  • Jul 28, 2019 10:13am Jul 28, 2019 10:13am
Quoting Adelhard
{quote} No; it’s not the only one way; simulation is another way of testing any new strategy or system!
What do you mean by simulation?
  • #397
  • Jul 28, 2019 9:05pm Jul 28, 2019 9:05pm
Of course, it is the best way to prove your system and all your trading skills before going into a real account.
  • #398
  • Jul 29, 2019 12:36am Jul 29, 2019 12:36am
Quoting mlawson71
{quote} What do you mean by simulation?
Maybe back-testing; but I am not sure! He knows the real answer!
  • #399
  • Jul 29, 2019 6:13am Jul 29, 2019 6:13am
Quoting mlawson71
{quote} What do you mean by simulation?
Yes I am talking about back testing; as you see even mt4 trading platform provides the back testing service!
  • #400
  • Jul 29, 2019 10:05am Jul 29, 2019 10:05am
Quoting Adelhard
{quote} Yes I am talking about back testing; as you see even mt4 trading platform provides the back testing service!
Yes good point, although forward testing is much better to rely on.
careful not to step in a pile of it
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