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Is demo trading enough before real account?

flipper58
Apr 03 2016 at 06:30
16 mensajes
jchan posted:
hello flipper58, you said lots of people can get good result but can't sustain it, is it because the market will mutate every once in a while....so that's why demanding traders to act accordingly....? without firm grip of methodology and flexibility cannot keep up w/ a good positive result? Thanks for sharing.


Hi jchan, there's lots of reasons but personally I don't think the market changing is one of them. One of the things I read very early on was that once you find a system that suits you stick with it which many people don't do. They get a few losses and decide the system doesn't work and then change it. The next system they find isn't the Holy Grail so it's rinse and repeat and they end up going round in circles. What these same people don't realise is that it's not the system failing, it's them. There are loads of good systems out there that work, it's us that doesn't.

I firmly believe that there is a Holy Grail in trading, it's us, it's in our own heads and not any system or black box. Lack of discipline and not sticking to system rules if it's a mechanical system is a big account killer but achieving it is easier said than done and it takes a long time to get your head straight. I also believe trading is 80%-90% psychology/us and 10%-20% system.

I can only comment on what I've done to get to the stage where I'm at but I've stuck with and developed my system over nearly 4 years, I've tweaked it and made it evolve until I was happy with it and have spent literally thousands and thousands of hours in front of a screen during that time. I trade M5 only so screen time for me has been invaluable but there's loads of ways of skinning the trading cat, you just have to find one that suits you and your personality and then continually work on YOU but whatever you do don't keep changing things.

I still have a fair way of my journey to go. I'm at the stage now where my system makes double what I do every single day, my job now is to close that gap.

stian
Apr 03 2016 at 23:39
325 mensajes
Many people become greedy. I had a really good system early, it performed well with really low drawdown, and what did I do? I quadrupled the risk after just 3 months of trading. Shortly after I lost my entire profit. One lessen learned.

jchan
Apr 04 2016 at 03:39
15 mensajes
stian, it's a good sharing of your experience. quadruple your risk means you have a 4times stoploss distance? what makes you come up with this decision? without a rational reason, suddenly you 4x your risk means you change your stoploss from near to far? and the change comes after you evaluated the near key levels? I can hardly imagine which part of the equation we can suddenly quadruple without a big shake in the whole strategy....the only one I can think of is the account balance which was pumped up extensively...not because of loss...it's because the strategy has tested with sufficient period, and you decide to escalate the account size. what do you think? IMO, I'll be very careful to choose the timeframe that fits my personality and trading strategy, then, I'll have to plan what win rate/rr ratio/ dd I want to use, once set, I don't think I can suddenly change the rr-ratio for a 4x scale because it turns a short term trade to a medium, or medium to medium-long. Extensive change of risk ratio without balancing by reward and timeframe is not right for me... and if all these are changed simultaneously..basically you are changing your whole strategy to a rather different species.

PearlerSearler (PearlerSearler)
Apr 04 2016 at 06:42
1 mensajes
What is everyone's advice for moving from demo to live?

I've had a go at it with 2 brokers, but it seems like they were doing some funny business on the live account as the trades didn't match up... Is this just real market conditions like they say?

Feel free to contact me directly if easier.

stian
Apr 04 2016 at 07:31
325 mensajes
@jchan Quadtruppel the lot size and therefore risking 4x the capital at each trade. Using the maximum drawdown the last 3 months as reference, getting a new larger than 4x the old drawdown was a bit of a shocker for a new trader. But it came from greed, I simply wanted more profit.

chrish9070 (chrish9070)
Apr 04 2016 at 08:02
45 mensajes
Hi Pearl,

Which brokers have you used where you have had funny business as you say? They all hunt stop losses (they can see overall where the stop losses are in the market). But some brokers are worse than others.

flipper58
Apr 04 2016 at 08:28
16 mensajes
chrish9070 posted:
Hi Pearl,

Which brokers have you used where you have had funny business as you say? They all hunt stop losses (they can see overall where the stop losses are in the market). But some brokers are worse than others.


With all due respect guys why would you be trading with brokers these days that are not true ECN's? There is no need to trade with bucket shop brokers any more even if you're trading 10 cents a pip and a $200 account. If your stop gets hunted with an ECN broker then it's not the broker, it's the banks and big players and they don't give a damn about retail traders and they can't see your stops either, if you get taken out you are just collateral damage. If you're trading longer term the answer is don't put your stops in really obvious places, the bank traders love it.

dianajs
Apr 07 2016 at 06:24
823 mensajes
My advice for moving from a demo to a live account is first of all to open a small live account until you get used to trading with real money, my other advice is always research the broker you decide to work with. Make sure they're licensed and registered and online reviews about them are good.

dkilmer (dkilmer)
Apr 07 2016 at 12:37
90 mensajes
how do you know a broker is a ECN broker?

Everything in the market is like a fart, if you have to force it, it is probably shit
flipper58
Apr 10 2016 at 13:28
16 mensajes
dkilmer posted:
how do you know a broker is a ECN broker?


Start making money, you'll soon find out.

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