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

Member Since Mar 18, 2019  50 posts Adam Cantor (AdamCantor) Jan 03 at 11:38
rickyb posted:
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.


exactly, demo should reflect the live environment but of course things such as SLIPPAGE cant be accounted for in demo so beware of that

AniLorak

Member Since Apr 18, 2017  847 posts AniLorak Jan 03 at 13:41
rabbithoe posted:
AniLorak posted:
Trallod posted:
In my opinion, demo trading cannot be considered as any serious indicator at all. With its help you can practice your strategy or get used to trading. But you should not count on the fact that you can prove your professionalism here. Firstly, because the demo does not give you the emotions that you feel in the real market. Secondly, the demo does not always correspond to the real markets, if we are talking about dishonest brokers. So it is better to work in a normal company with your money, then you can objectively assess the results and talk about some achievements.


Did you take your demo as seriously? May I know the amount of your demo practice please?


Hi AniLorak, if you take your demo seriously enough that you trade the demo account for a living, I respect you mate.


Well; now I am doing my live trading & of course my demo trading experience helped me a lot especially on my early days of live trading!

BluePanther

Member Since Jan 25, 2010  1273 posts Matt (BluePanther) Jan 04 at 05:44
VicGuedez posted:
...
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?


Professional4X posted:
Demo account price feeds can and often do in fact differ from the live feed from a broker.
...
Demo accounts are simply that, they're demo accounts... the results should NEVER be trusted to perform identical in live trading.


As Professional4X started, ECN Demo is still Demo: the 'negative' aspect you asked is the slippage and latency you will experience on Live but never on Demo.

For example, the scalping EAs Robotron and RedEye I personally tested on Demo and had the expectation of profitable performances. However, running on ECN Live I did not have the same performance, due to slippage and latency during order execution.

This can be expected of tick scalpers such as Waygrow EA, MillionDollarPips Ea and many others.

Also, when trading large Lots you will experience this even if you are not scalping. I was trading 20 Lots per trade and often suffering some slippage of price when entering.

Pupsik

Member Since Jan 26, 2015  10 posts Arya (Pupsik) Jan 09 at 09:39
They actually can be identical to live accounts! Unless your strategy is prone to big slippage - trades during high volatility or low liquidity times. In the latter case never trust a demo account.

"Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected" - George Soros
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