Is performance on demo account indicative on real accounts?

[bonger]

Hi everyone,

I've been trading on both real and demo accounts using Oanda for a few years now. Previously, I traded commodities and blew out my demo accounts multiple times. Interesting I was able to profit quite well in my real account before blowing the majority on a poorly thought out trade.

Since then, I have learnt many lessons and gone on to trade currencies instead due to changing margin requirements from Oanda. My real account(small size) is still profiting thanks to the many luminaries here. Meanwhile, my demo is on steroids. I have some certainty with regards to my system but it is one that depends on less than moderate spread slippage. Before I stack my real account with any more cash, I would like to know:

"Are demo accounts rigged to not have slippage or do they also reflect slippage based on conditions and position size?"

I suppose this is particular to different brokers, but I would like to hear any personal experiences of switching from demo to real and seeing trading systems decimated from real world slippage.

Any other input is also much appreciated.

If anyone from Global Prime FX is reading this, I would appreciate your feedback as well.

Thanks in advance!

[milanese]

Hi everyone,

I've been trading on both real and demo accounts using Oanda for a few years now. Previously, I traded commodities and blew out my demo accounts multiple times. Interesting I was able to profit quite well in my real account before blowing the majority on a poorly thought out trade.

Since then, I have learnt many lessons and gone on to trade currencies instead due to changing margin requirements from Oanda. My real account(small size) is still profiting thanks to the many luminaries here. Meanwhile, my demo is on steroids. I have some certainty with regards to my system but it is one that depends on less than moderate spread slippage. Before I stack my real account with any more cash, I would like to know:

"Are demo accounts rigged to not have slippage or do they also reflect slippage based on conditions and position size?"

I suppose this is particular to different brokers, but I would like to hear any personal experiences of switching from demo to real and seeing trading systems decimated from real world slippage.

Any other input is also much appreciated.

If anyone from Global Prime FX is reading this, I would appreciate your feedback as well.

Thanks in advance!

imo that post http://www.stevehopwoodforex.com/phpBB3 ... 20#p131020 will give you an answer to your question.

Cheers

Tommaso

[bonger]

Hey X

You might know this already however..

A demo environment can never be the same in execution as live as with a live environment your fills are going out to the liquidity providers and you can see slippage on trades. A demo environment just fills you at the exact price you want instantly, like a b-book.

For example news trading or tick scalping will work on a demo but as soon as you go live you can forget it.

FYI our demo feed mimics the live environment 1:1 in terms of spread and pricing as it just copies the pricing from the live server. Good luck with your search!

Cheers
Jeremy

Tommaso, thanks for your prompt reply.

Can you help me understand Jemooks' statement that globalprime demo mimics spread and price? Does that mean their demo takes into account execution slippage for position size and market conditions or that merely the spread/price is identical?

Was that statement meant to say globalprime's demo is more realistic than others'?

[milanese]

Hey X

You might know this already however..

A demo environment can never be the same in execution as live as with a live environment your fills are going out to the liquidity providers and you can see slippage on trades. A demo environment just fills you at the exact price you want instantly, like a b-book.

For example news trading or tick scalping will work on a demo but as soon as you go live you can forget it.

FYI our demo feed mimics the live environment 1:1 in terms of spread and pricing as it just copies the pricing from the live server. Good luck with your search!

Cheers
Jeremy

Tommaso, thanks for your prompt reply.

Can you help me understand Jemooks' statement that globalprime demo mimics spread and price? Does that mean their demo takes into account execution slippage for position size and market conditions or that merely the spread/price is identical?

Was that statement meant to say globalprime's demo is more realistic than others'?

Imo Jeremy is very clear, pricefeed is same on demo like on real, that means you will have same price andspread, but there is no slippage on demo account, so your order will always be filled, this is always difference from a demo environment just fills you at the exact price you want instantly, as there is no real transaction made.
So if your strategy is very sensitive to this and uses often news times ecc.. it will give always different results on demo and real account with any broker.

Cheers

Tommaso

[bonger]

Once again, thank you for your promptness.

OK, I just wanted to make sure that my understanding is correct.

In that case, any ideas on how I can gain some battle experience with slippage then? I dont ever trade news events, but my positions sizes are usually in the millions. My understanding is that large positions(are mine even considered large?) can cause liquidity problems and consequently slippage. Is that correct?

Thus far, I havent experienced any slippage (any that I managed to notice) in my real accounts because my position sizes are much smaller (tens of thousands).

I look forward to hearing any advice on this matter.

[SteveHopwood]

The dimwit posting here has gone from " My real account(small size)" to "but my positions sizes are usually in the millions" in just a few posts.

Hehe. I wish we could all do this.

Said dimwit is now consigned to the dustbin of SHF history.