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DEMO ACCOUNT vs LIVE ACCOUNT

kanon103
Mar 11 2015 at 23:50
99 posts
kricka posted:
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.


true about 'EA in the long run is not emotionless', but that does not change the answer what i have answered to the topic of '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'

if the demo has DD of 30% like you said. so will the live account. nothing about emotional at this point.

kricka
Mar 12 2015 at 00:07
92 posts
On a demo account I would agree on this. On a live account it is a concern. If the trading plan is that it can stand a 30% draw down and we are sticking to our trading strategy, no matter what, it can very well be so that it will turn out in our favor at the end.
A 30% draw down of a strategy do affect us in one way or the other more in a live account, then in a demo account.

" Lock in the profit and minimize the draw down "
james2015 (james2015)
Mar 17 2015 at 18:51
46 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.. 😁



i did wipe out my 2 live accounts 😀 it's all mind game you take more stress on live other then demo that's the main problem i think 😝

“The past can't hurt you anymore, not unless you let it.”
Columbus (Columbus)
Mar 25 2015 at 10:14
11 posts
Hello, I found good system, check this out.

<a href='https://www.myfxbook.com/members/mt5fxea_/insta-forex/1186021'><img border='0' src=''/></a>

kanon103
Mar 25 2015 at 10:27
99 posts
Columbus posted:
Hello, I found good system, check this out.

<a href='https://www.myfxbook.com/members/mt5fxea_/insta-forex/1186021'><img border='0' src=''/></a>


in case you did not see....
Track Record Not Verified
Trading Privileges Not Verified

i bet this is fake real account. most likely.

kanon103
Mar 25 2015 at 10:39
99 posts
Columbus posted:
Hello, I found good system, check this out.

<a href='https://www.myfxbook.com/members/mt5fxea_/insta-forex/1186021'><img border='0' src=''/></a>


i just checked their website
the EA is Arbitrage that will ONLY works on demo.
100% scam

BenNathanFX (BenNathanFX)
Mar 25 2015 at 15:12
137 posts
Yep total scam!

Well for Newbies here's what a GENUINE account should look like: https://www.myfxbook.com/members/BenNathanFTA/wwwfxnewstradercouk-daily-trade-alerts-live/1172397
So you should have 2 green ticks at the top! Anything non verified - or demo - avoid in my opinion....

Also dont get fooled by thinking you can just jump on to someone elses system and be done with it - take the time to learn, and take the time to find those willing to teach.....

And in terms of Real Vs Demo - Real is a very different bag altogether... in theory it shouldn't be but in reality is is... HOWEVER, some brokers such as instafx offer a no deposit bonus for opening an account - this is good as you can experience a live market with no risk..... just dont expect to be able to withdraw the funds as generally it doesn't happen as you have to have bet something like 10000 times the amount of the deposit - BUT its a way to play in the live markets.

HOLY GRAIL: Fundamental Analysis to chose your pairs/direction, Technical Entry/SL/TP for consistent Management of those decisions
JacoAF (JacoAF)
Mar 25 2015 at 21:46
130 posts
I agree with the comments of James Smith and Ben Nathan...

I personally stay away from EA's. In the long run markets are dynamic. EA's tend to fall off over time and may cost you your account. Also, people running EA's have to compete with multi-million dollar High Frequency Trading systems operating directly from the broker network systems, which makes thousands of transactions per second... And EA running off a PC cannot compete with the speed of these systems.

As far as Demo Accounts vs. Live Accounts are concerned I wish to add my own comments as follows:

a) A Demo Account does not invoke the human emotional responses a Live Account does. This is the reason an estimated 90% of all new traders will blow up their accounts. Learning to cope with these emotions is the biggest challenge any new trader faces. In my opinion the best way to use a demo account is to formulate your own trading plan, which should include a well designed trading strategy, strict set of personal trading rules (aimed at controlling your emotions) and a solid risk/reward profile which should be developed to minimize risk (losses) and maximize profits. Once you have all of these figured out you should practise your trading discipline with a demo account and improve/adjust your trading strategy until you feel comfortable with it.... this may take some time, but treat your demo account as if it is a live account.

b) A Demo Account does not have the transaction delay's or 're-quotes' usually associated with live accounts. In some cases this may result in failed opening or closing of positions during periods of high volatility and volume. This is why it is important to have a good risk/reward profile with strict rules that you must adhere to.

These, in my opinion, are the only real differences between the two worth noting.

Hope this helps.
Cheers!

Keep it simple, be disciplined, get rich slowly and above all protect your equity!
kricka
Mar 25 2015 at 23:18
92 posts
Jaco, you are so right in what you are saying. EA's without a very strict risk & money management account protection are doomed to fail at one time or the other. I do however think an EA can be profitable as long as you have the rmm protection running in the background if the EA goes out of control. Rmm robots or EA's are needed for the trader to be able to relax. A lot of emotional issues will be eliminated by having a security net for sure.
 

" Lock in the profit and minimize the draw down "
JacoAF (JacoAF)
Mar 26 2015 at 08:29
130 posts
kricka posted:
Jaco, you are so right in what you are saying. EA's without a very strict risk & money management account protection are doomed to fail at one time or the other. I do however think an EA can be profitable as long as you have the rmm protection running in the background if the EA goes out of control. Rmm robots or EA's are needed for the trader to be able to relax. A lot of emotional issues will be eliminated by having a security net for sure.
 


Hi Kricka...

I have very limited experience with EA's. In a way I guess I am really not qualified to comment on the success of EA's. EA's, like manual trading I suppose, can work if you have a very disciplined approach, and like you so wisely said, can work if you implement strict risk & money management rules.

I tested an EA written by Jim Dandy (not sure if you are familiar with his work - very clever man and accomplished programmer) over a period of about four months, admittedly I did not use a VPS, so the EA only ran while my PC was on. In South Africa, we unfortunately have to live with low speed internet connections, and added to that we have regular intermittent power cuts. I guess because of this I gave up. However, I was surprised with the results in the first 6 to 8 weeks. Besides all the obvious limitations of my infrastructure, the one thing that bothered me most was the 43% drawdown against a 248% gain. Now I know this does not seem to be too bad a trade-off, but I found myself stressing out more than I would with manual trading. I started trading during the flash crash of the NASDAQ in 2010, and the thought of my EA wiping out my account without my knowledge in a similar event, just scared the crap out of me... 😄

Anyway, like I said before, I am not really qualified to offer a valid opinion on EA's since I have very limited experience with them. I personally think if you wish to pursue EA's you have to first have an in-depth understanding of trading and how markets react and change over time, so you will be able to adjust and tweak your EA accordingly. In light of this, I would think that new traders should not dive into EA's early in their trading careers. I have been trading for about 5 years now. Perhaps when I have much more experience and a better understanding of the workings of the markets, I may attempt EA's again.

Regards
Cheers! 😎

Keep it simple, be disciplined, get rich slowly and above all protect your equity!
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