Why are ECN demo accounts not taken as proof of performance?
Jul 12, 2019 at 20:17
Hello, I'm asking an honest question to the community. Let me explain:
I've been developing my system for over 6 months now, from the start researched the best way to do testing without investing, and came to understand that ECN demo accounts behave like regular live ECN accounts (also I choosed ICMarkets for 'safety'). That way if the demo performs as expected so it will in the live account.
Now I keep seeing much of the 'demo account, demo performance' comments and it is getting to me tbh. Isn't that the purpose of the ECN demo account? I understand the claim 'you don't trust your system enough to go live, why should we?', and I'm not asking about that. 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? Also I understand that manual trading is not the same on demo than on live, due to trading psychology, but I'm talking about an automated system were you should not intervein unless absolutly necesary.
I've been developing my system for over 6 months now, from the start researched the best way to do testing without investing, and came to understand that ECN demo accounts behave like regular live ECN accounts (also I choosed ICMarkets for 'safety'). That way if the demo performs as expected so it will in the live account.
Now I keep seeing much of the 'demo account, demo performance' comments and it is getting to me tbh. Isn't that the purpose of the ECN demo account? I understand the claim 'you don't trust your system enough to go live, why should we?', and I'm not asking about that. 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? Also I understand that manual trading is not the same on demo than on live, due to trading psychology, but I'm talking about an automated system were you should not intervein unless absolutly necesary.
Jul 13, 2019 at 02:10
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.
Member Since Jan 05, 2016
1189 posts
Jul 13, 2019 at 04:58
VicGuedez posted:
Now I keep seeing much of the 'demo account, demo performance' comments and it is getting to me tbh. Isn't that the purpose of the ECN demo account? I understand the claim 'you don't trust your system enough to go live, why should we?', and I'm not asking about that. I'm asking about the sentiment that ECN demo accounts are not representative of what a live account could of have been.
Demo account price feeds can and often do in fact differ from the live feed from a broker.
Demo accounts have no financial risk with them, so you could just as easily open 10 different demo accounts, trade on each one with completely random and unreasonable trades, and then simply post up the 'HOLY GRAIL BESTEST EVER SUPER ELITE SYSTEM WITH 9999999999999% ROI EACH MONTH!' or some other similar.
Demo accounts are simply that, they're demo accounts, you can't spend the money from them, they have no financial value, and the results should NEVER be trusted to perform identical in live trading.
If it looks too good to be true, it's probably a scam! Let the buyer beware.
Jul 14, 2019 at 19:21
(edited Jul 14, 2019 at 19:21)
@Professional4X I don't think
completely random and unreasonable tradescan get you that far. Anyways, thanks for your opinion.
Member Since Jul 05, 2019
12 posts
Jul 15, 2019 at 11:27
VicGuedez posted:
@Professional4X I don't thinkcompletely random and unreasonable tradescan get you that far. Anyways, thanks for your opinion.
Statistically it is possible. If you open 100 demo accounts and each runs a different 'random' strategy then 1 of those accounts will perform really strongly.
Jul 15, 2019 at 14:07
@CrackedMic A random strategy might just be an unknown strategy to you, but it can still be a strategy. But 'completly random and unreasonable trades' are just that, that wont work.
Member Since Jan 05, 2016
1189 posts
Jul 15, 2019 at 21:42
VicGuedez posted:
@Professional4X I don't thinkcompletely random and unreasonable tradescan get you that far. Anyways, thanks for your opinion.
Think what you want, but you should think about this for a moment and you will see I am 100% correct.
Open two identical DEMO accounts each with $10,000.00 starting values.
Account #1: BUY EURUSD 1.0 LOTS with a take profit of 100 pips
Account #2: SELL EURUSD 1.0 LOTS with a take profit of 100 pips
Now add a series of additional pending tickets on each of those accounts space 5 pips apart.
Each of those tickets should 0.25 lots, and they should be using the same TP.
ONE of those accounts is going to have a 100% win rate, which you can easily open a stats page to 'prove you're a super elite awesome trader with a holy grail and never lose.... blah blah blah'
The decision to make those trades is completely random.
It is also UNREASONABLE to think this is a good idea to trade this way.
No strategy, no money management, nothing, just some open trades waiting to hit their TP in one of those directions.
If it looks too good to be true, it's probably a scam! Let the buyer beware.
Jul 16, 2019 at 04:54
if you have someone with verified ecn demo for ten years big profit every month and big stop loss and take profit and big pips per trade.you would have stampede buying it compared to someone with live account same results 3 months live trading.!!
Jul 17, 2019 at 00:51
@rickyb Hey ricky, thanks for the opinion.
@Professional4X Yes you are right, for an account of 1-3 months. But that wont last in the longrun which is what I care for. Thanks :)
@Professional4X Yes you are right, for an account of 1-3 months. But that wont last in the longrun which is what I care for. Thanks :)
Jul 29, 2019 at 14:45
rickyb posted:
if you have someone with verified ecn demo for ten years big profit every month and big stop loss and take profit and big pips per trade.you would have stampede buying it compared to someone with live account same results 3 months live trading.!!
That’s the reality; traders take casually the demo but when they invest their real money; they expect good result!
Dec 24, 2019 at 07:10
Easy way to get huge gain on demo account over a long period of time, for example 16 times the starting fund:
Step 1: Open 16 demo accounts with starting fund of $1000
Step 2: open a huge position (for example 10 lots) for those accounts, Long for 8 accounts and Short for 8 accounts.
Step 3: When 8 accounts opposite to the market have blown up, close the winning 8 accounts immediately.
Step 4: Now you have 8 accounts with 2x the fund = $2000 each
Now repeat 4 steps, but this time with 4 long 4 short, you will have 4 accounts with $4000 each
Repeat that again you will have 2 accounts with $8000 each
remember when you are operating this scheme, take some time gap between each cycle so on the timeframe it looks more trustable.
At the end you will have ONE account with $16000, which is 16 times the original fund, congratulations.
Declaim: OP I am not saying you did your demo account like that, I am just explaining why people wouldn't trust a demo account result because of those schemes exist.
Step 1: Open 16 demo accounts with starting fund of $1000
Step 2: open a huge position (for example 10 lots) for those accounts, Long for 8 accounts and Short for 8 accounts.
Step 3: When 8 accounts opposite to the market have blown up, close the winning 8 accounts immediately.
Step 4: Now you have 8 accounts with 2x the fund = $2000 each
Now repeat 4 steps, but this time with 4 long 4 short, you will have 4 accounts with $4000 each
Repeat that again you will have 2 accounts with $8000 each
remember when you are operating this scheme, take some time gap between each cycle so on the timeframe it looks more trustable.
At the end you will have ONE account with $16000, which is 16 times the original fund, congratulations.
Declaim: OP I am not saying you did your demo account like that, I am just explaining why people wouldn't trust a demo account result because of those schemes exist.
Dec 31, 2019 at 15:52
Cause demo account is a good way to learn trading that's true, however demo-account is not a real trading, as traders don't take it seriously. If you're trying to make profit demo, you aren't feared of loosing money, as you know that demo is a kind of game. Real ECN account is other thing, where you face a risk face-by-face and should first of all deal with your own emotions. So demo ECN trading is okey to learn, but that's not a proof of performance.
Dec 31, 2019 at 16:27
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.
Jan 02, 2020 at 15:17
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?
Jan 03, 2020 at 00:04
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.
Member Since Feb 22, 2011
4862 posts
Jan 03, 2020 at 09:30
It might sound strange but testing strategies performance on demo is sometimes better than testing it on cent account.
I found many of my strategies perfroms well on good broker demo and almost the same on real account.
While testing on poor conditions produce bad results.
I found many of my strategies perfroms well on good broker demo and almost the same on real account.
While testing on poor conditions produce bad results.
