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Why are ECN demo accounts not taken as proof of performance?

VicGuedez
Jul 12 2019 at 20:17
6 posts
Hello, I'm asking an honest question to the community. Let me explain:

I've been developing my system for over 6 months now, from the start researched the best way to do testing without investing, and came to understand that ECN demo accounts behave like regular live ECN accounts (also I choosed ICMarkets for 'safety'). That way if the demo performs as expected so it will in the live account.

Now I keep seeing much of the 'demo account, demo performance' comments and it is getting to me tbh. Isn't that the purpose of the ECN demo account? I understand the claim 'you don't trust your system enough to go live, why should we?', and I'm not asking about that. I'm asking about the sentiment that ECN demo accounts are not representative of what a live account could of have been.

Is there something negative that does not happen on ECN demo accounts? Also I understand that manual trading is not the same on demo than on live, due to trading psychology, but I'm talking about an automated system were you should not intervein unless absolutly necesary.

rickyb
Jul 13 2019 at 02:10
83 posts
your ecn demo should be very accurate for results.providing you are not scalping 1-2 pips.you have sl and tp set at broker.also check to see there are any big spike prices on any days.this will affect results compared to live.normal everyday trading will be close to live with with 1-2 percent difference at most if any.the only issue i had once was with broker e-mailing not to open many trades at same time with my ea on live account.i think was about 7-10 different pairs on same timeframe on change of time frame.these are the sort of things demo does not show with a given broker.

Professional4X
Jul 13 2019 at 04:58
1189 posts
VicGuedez posted:
Now I keep seeing much of the 'demo account, demo performance' comments and it is getting to me tbh. Isn't that the purpose of the ECN demo account? I understand the claim 'you don't trust your system enough to go live, why should we?', and I'm not asking about that. I'm asking about the sentiment that ECN demo accounts are not representative of what a live account could of have been.


Demo account price feeds can and often do in fact differ from the live feed from a broker.

Demo accounts have no financial risk with them, so you could just as easily open 10 different demo accounts, trade on each one with completely random and unreasonable trades, and then simply post up the 'HOLY GRAIL BESTEST EVER SUPER ELITE SYSTEM WITH 9999999999999% ROI EACH MONTH!' or some other similar.

Demo accounts are simply that, they're demo accounts, you can't spend the money from them, they have no financial value, and the results should NEVER be trusted to perform identical in live trading.



If it looks too good to be true, it's probably a scam! Let the buyer beware.
VicGuedez
Jul 14 2019 at 02:43
6 posts
@rickyb Thanks for your answer, and yes I'm not scalping.

VicGuedez
Jul 14 2019 at 19:21
6 posts
@Professional4X I don't think
completely random and unreasonable trades
can get you that far. Anyways, thanks for your opinion.

CrackedMic
Jul 15 2019 at 11:27
12 posts
VicGuedez posted:
@Professional4X I don't think
completely random and unreasonable trades
can get you that far. Anyways, thanks for your opinion.


Statistically it is possible. If you open 100 demo accounts and each runs a different 'random' strategy then 1 of those accounts will perform really strongly.

VicGuedez
Jul 15 2019 at 14:07
6 posts
@CrackedMic A random strategy might just be an unknown strategy to you, but it can still be a strategy. But 'completly random and unreasonable trades' are just that, that wont work.

Professional4X
Jul 15 2019 at 21:42
1189 posts
VicGuedez posted:
@Professional4X I don't think
completely random and unreasonable trades
can get you that far. Anyways, thanks for your opinion.


Think what you want, but you should think about this for a moment and you will see I am 100% correct.

Open two identical DEMO accounts each with $10,000.00 starting values.

Account #1: BUY EURUSD 1.0 LOTS with a take profit of 100 pips
Account #2: SELL EURUSD 1.0 LOTS with a take profit of 100 pips

Now add a series of additional pending tickets on each of those accounts space 5 pips apart.
Each of those tickets should 0.25 lots, and they should be using the same TP.

ONE of those accounts is going to have a 100% win rate, which you can easily open a stats page to 'prove you're a super elite awesome trader with a holy grail and never lose.... blah blah blah'

The decision to make those trades is completely random.
It is also UNREASONABLE to think this is a good idea to trade this way.

No strategy, no money management, nothing, just some open trades waiting to hit their TP in one of those directions.


If it looks too good to be true, it's probably a scam! Let the buyer beware.
rickyb
Jul 16 2019 at 04:54
83 posts
if you have someone with verified ecn demo for ten years big profit every month and big stop loss and take profit and big pips per trade.you would have stampede buying it compared to someone with live account same results 3 months live trading.!!

VicGuedez
Jul 17 2019 at 00:51
6 posts
@rickyb Hey ricky, thanks for the opinion.

@Professional4X Yes you are right, for an account of 1-3 months. But that wont last in the longrun which is what I care for. Thanks :)

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