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DEMO ACCOUNT vs LIVE ACCOUNT

kricka
Mar 09 2015 at 23:10
92 posts
Slippage is of great concern in a live account. Spikes and other low down methods from brokers is another one. It all depends on what kind of broker we are dealing with. Market Makers do trade against you and will try to hedge against your positions, hoping you will loose. ECN brokers are more commission based and therefore do not trade against you.
It is not all in our heads but emotional pressure will count for a lot of the differences between trading a demo account vs. a live account. Is there a trader who is 100% in control when trading live? No it is not pa possibility and therefore we have to kind of protect our self from being drawn in into this emotional trading pattern. The best cure for this is to have our risk & money management rules defined before we trade. After all we have set the rules our self and the question will arise in real live trading, will we follow our own rules to the letter?

" Lock in the profit and minimize the draw down "
Cholipop
Mar 10 2015 at 07:39
406 posts
Do recall that even if a broker trades against you, it doesn't mean you will lose. If you owned a company wouldn't you trade against your clients being that 95% of them lose? You hear so much about the broker trading against you, but the fact is them doing so doesn't truly effect you reaching your target or not.

IztokV
Mar 10 2015 at 08:08
14 posts
Cholipop posted:
 Do recall that even if a broker trades against you, it doesn't mean you will lose. If you owned a company wouldn't you trade against your clients being that 95% of them lose? You hear so much about the broker trading against you, but the fact is them doing so doesn't truly effect you reaching your target or not.


True. 'All broker & everybody is against me...' is just one of many excuses. If a trader guess, choose or take the trade in right direction no broker can take his profit away.

sareen (sareen)
Mar 10 2015 at 08:16
63 posts
IztokV posted:
Cholipop posted:
 Do recall that even if a broker trades against you, it doesn't mean you will lose. If you owned a company wouldn't you trade against your clients being that 95% of them lose? You hear so much about the broker trading against you, but the fact is them doing so doesn't truly effect you reaching your target or not.


True. 'All broker & everybody is against me...' is just one of many excuses. If a trader guess, choose or take the trade in right direction no broker can take his profit away.


I agree. Winning in trading usually has very little to do with a broker unless their spreads are volatile and too wide. As long as the prices reflect the representation of the wider market the only thing a trader needs to manage is their strategy, system and mindset. The 95% who lose is a greater social norm, as if you look at most people who work, roughly 90-95% of people are paying more tax than the other 5-10%, 99% of people earn significantly less than the other 1%, etc
It is all a pyramid system. Brokers rely on this 95-5 ratio because it is merely a self fulfilling prophecy. There are only a small number of people who are willing to go to any lengths necessary to be that 5%. Could it grow to 10, 15 or 20%? Yes it could but that would require a mass psychological shift in values and norms and it's never just as simple as that.
However, although statistics don't lie, I believe that anyone can still be that 5% of winners. It can be done.

When you lose, don't lose the Lesson
MASHAJE
Mar 10 2015 at 09:55
1 posts
I have been trading on a demo and now I am about to move to live. I have been pretty succesful on a demo but I have heard that live is different. I have heard that you are likely to lose on a live than demo so that brokers lure you to open live accounts? is it true?

kanon103
Mar 11 2015 at 05:30
99 posts
i have running EAs on Demo and live. and they are pretty same. only have some minor slippages.

kanon103
Mar 11 2015 at 05:36
99 posts
essenn posted:
From my personal experience, A demo account is an accurate representation of a live account, If a Pro trader or A well designed EA run profitably on a Demo account then it's 99.99 percent certain these resulted can be replicated in a Live account.

Discuss.. 😁



not true if manual trading
true if EA trading

chaviq
Mar 11 2015 at 07:45
3 posts
You must have heard of this, but I feel like reiterating.

Personally, I find there is a lot of difference between demo and live account. Psychologically it's not the same at all.

The funny thing is, I turn a 500 euro to nearly 16 000 euros in 5 days, with 1:500 leverage. Once I achieve more 5k and above, my trading style change and I can hold longer.

With a live account, I freak out. I can't read chart anymore, each time I enter a position I only pray that I can at least break even.
When I have a losing position, I try to wait till the market turns to my favor. Well, you know what happen, I close the losing position at high losses.

The stress level is completely different. Actually now I don't know whether is it the demo account that has affected my trading style
or I was just lucky with my demo account.

Perhaps my advice would be, only play demo with the same amount of money you have in your live account.
But here's the thing, when the demo account has increases too much, you kinda feel like they are 'real money'.

Having both demo and live account on my monitor really sucks. Such a contrast lol.

kricka
Mar 11 2015 at 23:04
92 posts
A very good posting of you 'chaviq'. It is hard to say if you did extremely well on your demo trading vs. live but as you say the stress level increases when dealing with real money. More mistakes are made both on entry and exit, we are more careful if the positions goes against us and we want to get out asap before loosing too much money, and sometimes we get out too soon, realizing the market did indeed go our way.
What is the remedy for this? Sticking to our trading plan and follow it in a discipline way so to speak. Even if we loose by sticking to our trading plan we do get invaluable insight by doing so, maybe we do have to reevaluate the plan and create a new one but by sticking to it some great lesson is to be learned for sure.

" Lock in the profit and minimize the draw down "
kricka
Mar 11 2015 at 23:39
92 posts
kanon103, I agree what you say, EA and you're kind of out of the manual emotional trading scenario, to some extent, for awhile. The question is, what happens if the EA is going haywire, to make an example a draw down of 30% in a couple of days, and you start thinking, whats wrong? Or do I have to make some changes to the EA to cut the losses? Do this scenario affect us emotionally, yes it does, so EA in the long run is not emotionless.

" Lock in the profit and minimize the draw down "
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