will investors even look at demo statement

Hello all, I have just joined myfxbook and after watching a community chat for a while I have noticed that all are interested exclusively in real account statements, I am doing a demo statement for a few months and now been wondering if its a waist of time, should i just wait till I have some decent money and make a real account statement?

Hi,
Demo statements have their uses, it really depends what you are trying to achieve. If you are looking to sell either a system or your services then I would recommend a live account with a reputable broker is the way forward.

A demo account is really only any use for testing a strategy yourself before you put it live and then you need to pay attention to things like the expectancy of that system which will not be as high on a live account as a demo account due to slippage on order entry and exit.

If you are trading manually and trying to market yourself, a live account with a substantial balance is really the only way forward to gain the trust of serious investors.

Best regards Steve

No investor will invest based on demo accounts. There are many differences between demo and live. If you want investors then you will need live accounts.

CasholeLTD posted:
No investor will invest based on demo accounts. There are many differences between demo and live. If you want investors then you will need live accounts.

You can't be that adamant. Someone selling an EA that is trading on H1 or even on D1 could still use a demo account to start testing the EA and after six months / 1 year switch to real account.
However I agree with you, a scalper or any EA trading volatile event can absolutely not be trusted based on demo statements.

The main point I would defend regarding live trading is that it gives you a huge advantage versus demo sellers. It means that you believe in your strategy, at least enough to put in real money.
A lot of people advertise stuff but are not even ready to put in a single dime in it. Whose going to buy such garbage then...

Hello all and thanks for such a quick replies :)

It make sense actually, if I want someone to invest real money I will have to show him real money statement!
How much does it matter account size, would you say 5K will interest someone after 2year statement on 4% monthly growth without any withdraw? Or does it even matter if I do withdraw as long I constantly earn min 4% each month for long period without big DD?

Thank you all for help, I never thought about investors before, but after few years now working in a team I realized that I will never get to big money by saving just from my salary, and I never had any strategy to earn big % in short time, so definitely going to open live account only for potential investors.

It's hard to give an amount. I think that 1k€ is the reasonable minimum.

Regarding the history, even if it's demo and as long as it's not a 1M scalper, any trak record above 1 year will always have a very positive effect on potential investors.

Hi,
Depends on what investors you are trying to attract. Small accounts will attract small fish. As most larger investors should know that psychology plays a large roll in trading and so if you aren't used to trading big money then it's probably not a good idea to trust you with it. Large amounts play horrible tricks on your mind. If you are trading 1k don't expect anyone with 100k to invest to want you to trade their money.

Also on the issue of withdrawals, you should definitely do them. It validates that the account is a live account and not a demo ( although you can arrange withdrawals from demo accounts sometimes ).

Best regards Steve

Hey all, thanks again for replies, you all been very helpful :)

Regards

If a demo account you show extremely high performance (high profits with little loss) then you can get the attention of any person. Of course, after drawing attention to prove that a real account possible good result. Without this major investment can not be.

Hey Andrey thanks for your comment!

When I will have over 1 year statement on demo I will start to show it around, but asap I will open live account also so at point when i wil have deamo ready my live will also have half a year statement, so gueass thats a good start :)

Thans gaing all for helpful comments, wish you all the best!

Matej M

sorry little misspelled at last sentence :)

mmatej1988 posted:
Hello all and thanks for such a quick replies :)

It make sense actually, if I want someone to invest real money I will have to show him real money statement!
How much does it matter account size, would you say 5K will interest someone after 2year statement on 4% monthly growth without any withdraw? Or does it even matter if I do withdraw as long I constantly earn min 4% each month for long period without big DD?

Thank you all for help, I never thought about investors before, but after few years now working in a team I realized that I will never get to big money by saving just from my salary, and I never had any strategy to earn big % in short time, so definitely going to open live account only for potential investors.

Showing some drawdown is healthy, accounts who are 'perfect' with no drawdown are scarrier to people then accounts with some drawdown. As this way clients can see what potential losses can be.
Some very dangerous systems have no drawdowns until they explode.

mmatej1988 posted:
Hello all, I have just joined myfxbook and after watching a community chat for a while I have noticed that all are interested exclusively in real account statements, I am doing a demo statement for a few months and now been wondering if its a waist of time, should i just wait till I have some decent money and make a real account statement?

Some demo accounts are doing much better than the millions real accounts so WHY NOT!?

 

Because the psychology of trading with real money is a lot different to the psychology of trading with play money.
Best regards Steve

i agree with you steve.

stevetrade posted:
Because the psychology of trading with real money is a lot different to the psychology of trading with play money.
Best regards Steve

I totally agree.

I'm constantly offered trading systems from demo traders. Unless a trader is willing to put a big chunk of his own money behind his own trading then why should I invest?

If you want to attract investment then be seen to have your balls on the line with your trading, just like your investors will have.

stevetrade posted:
Because the psychology of trading with real money is a lot different to the psychology of trading with play money.
Best regards Steve

Yes yes yes. Thats why I use only robots to totally reduce emotions problem.