i have seen according to our trading experience in demo account we the traders always use our trading strategies , its very supportive to increase trading performance , but in practical situation is totally different , the result we take from demo actually not works in a real account
not so much! I compared nearly 900+ trades in cash vs. sim taken at same time in same index; trades were identical - not totally different; in fact no difference at all.
You have to take into account slippage which is very real. The bid and asked spreads in live trading are wider and can get even wider due to market maker manipulation. So, demo accounts for practical purposes is useless. Instead, trade live using very small amounts say $100 a trade to get an actual feel and results. Use stop losses too. Atleast, you have real time conditions when you have to move to live trading.
demo trading is 90% technical, and 10% mind management. Once you are ok with demo trading, proceed to do live trading. But Live trading is 90% mind management, and 10% technical. As long as you cannot control your mind, you wouldn't make it. demo trading is like walking on a long piece of plank just one foot above the ground. Live trading is like walking on a long piece of plank hundreds of yards above the ground.
Can you tell us what are the differences you've found and which platform you're using? I'm using IB and I haven't found any significant differences. In fact, their sim environment is always putting limit orders at the end of the queue, meaning it simulates the worst case.
Jigsaw sim seems to account for slippage so if you can create a winning strategy there you should be good you then have to deal with the psychology of this trade didnt work what do i need to change
Yeah, the differences arise because in a demo account we don't trade with real money, but on a live account, real funds are involved and that's when emotions step in.
This is why I think that elite professional athletes and world ranking video gamers would make great traders. They know how to perform outside of that "practice mode" and they have no problem on pulling the trigger/clicking the mouse or hotkey when they see a particular pattern setup. Trading, like life, is 95% psychological: 1) you can be a terrific TA strategist but can't pull the trigger 2) you can be a terrible TA strategist but are able to keep losses in check which result in a reasonable profit factor and a favorable W/L ratio
I also agree that there is very little subtle difference. Hiccups happen all the time even with the "best of the best of the best" technologically advanced trading platforms from the best brokers and software companies but for the most part, the hiccups are not in themselves "account busting" things IMO It also matters whether you are an: 1) investor 2) swing trader 3) day trader --- I think this batch of traders tend to exaggerate the demo/live platform differences the most