DEMO ACCOUNT vs LIVE ACCOUNT
Mitglied seit Nov 21, 2011
1718 Posts
Aug 13, 2013 at 10:58
mohamedelnaggar posted:
if someone was succeded in demo by 80% , will hi succes same percentage in real account?
No for heaps of reasons... otherwise all of us would be so rich already.
Aug 13, 2013 at 11:40
mohamedelnaggar posted:
if someone was succeded in demo by 80% , will hi succes same percentage in real account?
not excatly, but if you succeed 80% in demo, the you will succeed 70% in Real account.
The difference is slippage and liquidity, demo has endless liquidity but Real has limited liquidity..
I have real account but i will only put it up end of the month working on it, check my demo account, very good.
https://www.myfxbook.com/members/essenn/surepips-technical/589517
Accurate "Money Management" Eliminates Account Blowup / Managed Entry Prevents hiting "Stop Losses" / Calculated "Trailing Stops" Keeps Position intact / Watch your "Take Profit" takes care of it Self...
Mitglied seit Dec 12, 2012
2 Posts
Aug 13, 2013 at 20:39
I want one that explains why has demo endless liquidity but Real has limited liquidity ?????????
forex_trader_119287
Mitglied seit Mar 28, 2013
2 Posts
Aug 14, 2013 at 07:32
Slippage occurs on demo accounts just as in live accounts, but only in situations where you are trading major news events for example.
If your broker is a true ECN broker, and has large pools of liquidity providers, then there should be near zero slippage. I trade professionally with an institutional broker and rarely experience any slippage at all.
Also, Liquidity only matters when trading a large amount of lots that require larger than average opposing orders (to be a buyer, there must be enough sellers and vice versa).
Some brokers offer exactly the same liquidity and spreads on their demo accounts as their live accounts (Fin FX comes to mind), so in those instances there is typically no difference in the results.
We use a demo account to run our copier, because we use an institutional broker with no way to connect to copier services (no MT4/MT5 terminal means no copier connections usually).
I hope this helped!
If your broker is a true ECN broker, and has large pools of liquidity providers, then there should be near zero slippage. I trade professionally with an institutional broker and rarely experience any slippage at all.
Also, Liquidity only matters when trading a large amount of lots that require larger than average opposing orders (to be a buyer, there must be enough sellers and vice versa).
Some brokers offer exactly the same liquidity and spreads on their demo accounts as their live accounts (Fin FX comes to mind), so in those instances there is typically no difference in the results.
We use a demo account to run our copier, because we use an institutional broker with no way to connect to copier services (no MT4/MT5 terminal means no copier connections usually).
I hope this helped!
forex_trader_143058
Mitglied seit Aug 06, 2013
30 Posts
Aug 14, 2013 at 08:02
mohamedelnaggar posted:
I want one that explains why has demo endless liquidity but Real has limited liquidity ?????????
well in reality you need to find somedy who is willing to buy or sell at a certain price +time +amount..... in a demo there is always someone there. you just need to hit the button wherever you wish and a deal is executed......
But I would heavily agree with @CrazyTrader demo results are in the long run far far away from real accounts.
If you assume that demo is only 10% worse than reality, then some guys here are ultra rich and managing billions of USD..... well not sure that this scenario is really realistic. What do you think?
Aug 14, 2013 at 12:55
The reality is much more complicated and I would take the ratio of Real - Demo as half.
And when their calculations the imeeno this approach.
Perhaps for automated systems, the ratio is 2/3.
And when their calculations the imeeno this approach.
Perhaps for automated systems, the ratio is 2/3.
Не гадаю куда пойдет Рынок - имею решение на движение в любую сторону.
forex_trader_143058
Mitglied seit Aug 06, 2013
30 Posts
Aug 14, 2013 at 13:37
(bearbeitet Aug 14, 2013 at 13:45)
Clerical posted:
The reality is much more complicated and I would take the ratio of Real - Demo as half.
And when their calculations the imeeno this approach.
Perhaps for automated systems, the ratio is 2/3.
well I have no statistics to prove that you are right or wrong...... just a small indication: even 50% of some of these fantastic results would result in massive accumulation of wealth and huge money inflows and I doubt it is the case... but I do not know for sure, I might have missed some piece of reality in the last couple of years
Mitglied seit Apr 28, 2013
11 Posts
Aug 14, 2013 at 18:56
Demo and live is not the same!!! when live same were as demo, than i would be millionaire!
Careful in real, greedy in contest. :')
Aug 14, 2013 at 19:40
TraderTim2013 posted:
Demo and live is not the same!!! when live same were as demo, than i would be millionaire!
So true, welcome to the milionaire club :)
Also time is not important :
https://www.myfxbook.com/secure/statements/664070/statement.pdf
forex_trader_119287
Mitglied seit Mar 28, 2013
2 Posts
Aug 15, 2013 at 06:31
Demo and live are not exactly the same no. Demo accounts are an excellent tool to prove a system, and once you go live there will be minor differences, mostly psychological.
The biggest reason traders lose money once going to a live account is psychological. There is a big difference psychologically between trading with no real risk on a demo account and suddenly trading money that you can actually lose.
Brokers practices also contribute to the differences between the two, but if a system works well on demo, it will work similarly on live money if all other hindrances are removed such as slippage, spreads, etc.
The biggest reason traders lose money once going to a live account is psychological. There is a big difference psychologically between trading with no real risk on a demo account and suddenly trading money that you can actually lose.
Brokers practices also contribute to the differences between the two, but if a system works well on demo, it will work similarly on live money if all other hindrances are removed such as slippage, spreads, etc.
Aug 21, 2013 at 11:01
I wouldn't be surprised if someone tells me that brokers are playing with demo accounts pushing them up for a bit. I've read somewhere the recommendation to open two accounts: live and demo. With the same broker and same leverage and duplicate the trades. If you see demo acc going up, while live is losing it is a good idea to get away from this broker, since there can be cheating with your live account as well.
Aug 21, 2013 at 16:16
I wouldn't be surprised if someone tells me that brokers are playing with demo accounts pushing them up for a bit. I've read somewhere the recommendation to open two accounts: live and demo. With the same broker and same leverage and duplicate the trades. If you see demo acc going up, while live is losing it is a good idea to get away from this broker, since there can be cheating with your live account as well.
Maybe there are some broker so stupid to do such a thing. I never met one, but I also never do buissiness with no name (extremly low spread & promising everything ) new broker usualy from some exotic country.
Used demo 75 % of time, compare the price with real all the time and I never ever see a cent (dime , pip) difference with my broker.
Maybe there are some broker so stupid to do such a thing. I never met one, but I also never do buissiness with no name (extremly low spread & promising everything ) new broker usualy from some exotic country.
Used demo 75 % of time, compare the price with real all the time and I never ever see a cent (dime , pip) difference with my broker.
Apr 16, 2014 at 07:05
Mad_Matt posted:
I can tell the same. Just dig through the forums and see what brokers are recommended. Follow people's experience and you won't fall!
You can find both positive and negative posts about same broker all over internet. You shouldnt follow all posts blindly. I suggest you, if you already decided to look at specific broker, try to trade with little deposit and then withdraw after few weeks.
Sep 10, 2014 at 13:37
you can also try real one, but cent for example. It's a real but since it's denominated in cents you would not lose to much. If everything works good with the cent account you can open an account of different type with a bigger amount of deposit with the same broker. 😄
Sep 10, 2014 at 21:04
It all depends on what kind of a broker you are using if a demo account can be trusted.
'Market Makers' brokers do manipulate feed and do probably not trade against you as they do in a live accounts. Slippage can be in your favor too. They do not charge commission so they have to earn money in one way or another.
'ECN brokers' don't trade against you because they earn their profit on commission. They do not need to manipulate any feed so the feed is accurate in a demo account. Commission, interest is charged on the demo account as well.
Have a look at the demo account I'm using for testing different strategies. I'm using an ECN broker.
https://www.myfxbook.com/community/trading-systems/rmm-robot/817698,1
'Market Makers' brokers do manipulate feed and do probably not trade against you as they do in a live accounts. Slippage can be in your favor too. They do not charge commission so they have to earn money in one way or another.
'ECN brokers' don't trade against you because they earn their profit on commission. They do not need to manipulate any feed so the feed is accurate in a demo account. Commission, interest is charged on the demo account as well.
Have a look at the demo account I'm using for testing different strategies. I'm using an ECN broker.
https://www.myfxbook.com/community/trading-systems/rmm-robot/817698,1
" Lock in the profit and minimize the draw down "
Sep 12, 2014 at 10:20
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.. 😁
Base on my experience trading news with IC Markets, this is totally NOT the case. I ran an EA on demo for months making profits. Then I switched to live and kept the demo one running at the same time as my live. Demo made a good profits while live, made a big loss.
I believe on Demo there is no slippage, whereas on live slippage might hit you hard!
"What no eye has seen, what no ear has heard, and what no human mind has conceived is the very thing that God has prepared for those who love Him.
Sep 12, 2014 at 23:22
Hi khuzwayom,
yes I agree on what you are saying that slippage is not accounted for in a demo accounts and of course emotional attributes are not as well. What can we do to include these negative aspects and calculate it as a negative loss in our demo accounts? I would say withdraw at least 10% to make up for this.
yes I agree on what you are saying that slippage is not accounted for in a demo accounts and of course emotional attributes are not as well. What can we do to include these negative aspects and calculate it as a negative loss in our demo accounts? I would say withdraw at least 10% to make up for this.
" Lock in the profit and minimize the draw down "
