Forex trading account question.

Discussion in 'Trading' started by KINGOFSHORTS, Dec 2, 2009.

  1. I heard from some folks that all practice/paper trade forex accounts show success for the traders. It is when the actually deposit money and trade with real cash when the blowouts and losses occur.

    Is this true?? Sounds pretty sinister if it is.
     
  2. I have lost plenty of money on both types of accounts
    :)
     
  3. When dealing with simulators you should consider setting a few order constraints otherwise you will likely show unrealistic results.

    Use MIT orders set 1 tick outside of your target limit or stop. This results in more realistic fills requiring price to go through your target before being filled. When your order is filled use your original target price.

    Most simulators use last trade price, which constantly toggles between filling bid and ask orders, to simulate fills. As a result your orders are artificially improved by the spread. This is probably one of the biggest reasons why simulated results rarely match real world results.

    The FX Spread and liquidity is a killer...

    Normally you do not have visibility to forex volume traded by price in a retail trader interface. If you want to peek at how thin these currencies trade load and capture the bars and histogram data. You'll see the volume traded at each price tick... mostly qty 1 - 5 fills at each tick and the price bounces.

    Good Luck.
     
  4. as someone said to me, you'll do things while demo trading you'd never do real trading -
    unrealistic consistently profitable results from demo trading, and one can always reset
    the account margin and start over

    the goal of demo trading is not about profit but proving/dis-proving one's trading system

    Oananda's spread for the eurusd is 0.9 pips most of the active trading hours, but it will
    change and may go as high as 10 pips during the release of economic reports - any -
    not just the ones from the US
    i've found mkt order fills to be instant and at the current price

    if you want to see volume per tick, second, minute get a NinjaTrader demo and view the
    6E Euro Fx contract and others
    peak volume is around 7, 8, 9am pst - end of the European business day but there's still
    a lot of price movement that can occur after that time as well as during the 'Asian' hours
     
  5. AyeYo

    AyeYo

    It sounds like you're implying that the trading is manipulated to show a profit. Is that what you're asking?

    It isn't, IMO. As others have mentioned, the difference (and most likely cause of a swing to losses) is the emotions that come with trading real money.

    Have you considered opening a real account and trading 1k lots? It costs very little (even if you blow it out), but it's a much better simulator than a practice account.