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My result on a demo account

  1. I wanted to see what all the fuss was about forex.

    So I opened 6 demo accounts. With 2000 dollar on each and using, 200:1 leverage on every one.

    My criteria was to only buy currency pairs that are volatile, and then I added together all positive price trend increases for 1 month (using 1 hour interval), and then I divided the sum of all pips made by the number of positive price trends, to get the average increase every time it increases, so I know when I should liquidate my position, before the price trend levels off and begin to decrease.

    The result:

    I lost all my money on 4 of the accounts.

    the remaining two accounts, one of the accounts currency pairs(aud/euro) increased from 0.622 to 0.625, before i liquidated, which is a 0.48% increase, but since i used 200 in leverage, it is a 96% increase.

    however, the profit I made when it had reached 10%(with leverage) is 200 dollar, which i then reinvested into it, and using 200:1 leverage on, so I bought yet again currency worth 400 0dollar. And on the next 10 percent increase I made it resulted in a 220 dollar profit.

    2000,2200,2420,2662,2928,3221,3543+3897+4714 and then 6% on 4714= 4996, however, I got 7852 because reinvested more frequently.

    The other one, was nzd/gbp and it increased from 0.393 to 0.398= 1.27% and with 200 leverage=254%, and by reinvesting I got 46360 dollar.

    Summary:

    4 loser, with 2000= 8000 losses, and one winners 7852+46360=54212

    Net profit= 54212-8000=46212

    Which is 461212/12000=3.851 And I’m quite happy getting that during 40 hours.

    No, idea, but I might just, have been lucky. However, I will try this with 10 000 dollar soon and see, because I don’t want to stay awake for 40 hours again, with just virtual money.

    However the strategy that I employed is not sustainable in the long run, since I exposed more than 2% of my money,and everyone know that a string of losses would wipe me out. However, I think this is a good way to get a good headstart, and as you increase your account value, you will expose yourself less.

    Another queston one should ask oneself, is if I would benefit from concentrating on one currency pair instead, and learn insideout, and thus make better predictions, and trade 1250 dollar, after one another, rather than trading everything at one time like I did. However, using just one pair, would decrease my asset effeciency ratio dramatically, and I think a lot of people cant comprehend the importance being efficient with your assets, and reduce the timecycle.

    If the time cycle takes half the time, your profit will be twice as much. Just something to think about =)
     
  2. Where did you open demo accounts ?


    How long do they let you practice?

    thanks Hans
     
  3. Everyone makes a ton of money trading demo accounts. Its very different when its real money - just a thought.
     
  4. forex.com Are they by the way a good place to open a real account with?

    No idea, Ive just been practising for 40 hours.
     
  5. Why wouldnt the same results be achieveable on a real account?

    If I buy currencies for real live prices, with real life settings, why why why wouldnt it work =)
     
  6. Because you know, its real money and your entries and exit will be different only due to psychology issues.
     

  7. I have no idea myself if they are "good" or not.

    Do BEWARE a demo account is really only going to teach you the mechanics of the trading interface, demo fills in real trading may or may not be available for wins but most assuredly would be for losses.

    But the real kicker is PSYCHOLOGY is completely different.
     
  8. It doesnt, matter what my emotions or seventh sense say. I strictly follow the strategy plan Ive set up,without any exceptions.

    Its kinda basic, that you should never let your emotions do the strategy for you, but the logic.
     

  9. forex.com has a fixed fill for every currency pair. USD/JPY for instance has a fixed fill of 4 pips for instance.
     
  10. Yes but you said your accounts blew out 4/6 times in parallel.

    Could you still be that way on you 5th try with blowing out your account the previous 4 times in sequence in under 40 hrs?

    hmmm I think you expect too much of yourself.
     
  11. I didnt care which price direction the currency had.

    The only thing I took into account was volatility, when determining what I should buy, assuming that there is a 50% chance of the currency going up and 50% going down. And for how long a trend last before it heads toward the opposite direction.

    If the average trend is either up or down 1% for 1 hour interval, my win ratio is 2:1, since I will lose my whole account value when the currency has dropped by a half percent using 200:1 leverage.

    So my strategy will be more beneficial the more volatile the currency is. If the average going up is 4% for one day interval, then my ratio win ratio is 8:1. I would however then have to lower my leverage because the currency might be more likely to zigzag up to 4%.

    So If, I try to predict which direction the currency will head towards to, I think I would get at least 60% winners and 40% losers.
     

  12. You appear to be comparing apples to oranges, best of luck to you .
     
  13. Its kinda obvious you have to change a lot of the calculations going from one hour interval to one day. But that maybe wasnt obvious to you?
     

  14. What's obvious is that you do not plan to trade your real account like your demo and you think blowing out 4 times in a row will not affect your psychology.

    step back and think about it for a minute
     
  15. thanks for the realistic post....thread....

    I thought this was another shill thread,

    you know,

    a supposedly believable person, fronting like they actually did something, hoping that people will contact them,,,,

    iow, another sales job
     
  16. You seem to imply that psychology is not an issue for you. The fact that you are concerned about the opinions of the members of this forum proves that it is.
     
  17. epic-- Its just my simple-minded opinion. With your enviable track record, perhaps an idea is to take every penny you can beg, borrow or steal and trade it. You seem confident that you will make millions very quickly.

    I am humbled by your trading prowess, as I should be.

    :D
     
  18. Well, I will do try this with 1000 dollar in about 2 months when I get the money, and we will just see what happens.

    You guys, might be right, that its not an enviable strategy, and if Im right and can double my money by 4 times, every 40 hours like I did, i will be more than happy.


    Only time will tell =)

    By the way how many times is it possible to double the money? I mean, there has to be a stop somewhere.
     
  19. Not really. Im just a little bit impressed by the amazing 4 double return. Especially since ive been trading in the stock market for 2 months, only averaging abiut 3% every week.

    I might be to impatient, but Im not going to wait 6 months before Ive doubled the money. And by the way, its definately worth risking 1000 dollar, if I can make 4000 dollar, if there is a 50% chance losing or winning.

    And I was just unlucky who got 4 losses and 2 wins if we assume the chance to win was 50% and a loss 50%. So in a real account, I would just diversify more, maybe only putting 500 dollar, on each trade when I have 10 000 dollar, to get closer to the mean and kill the impact from any irregularities.
     
  20. Well, I traded all accounts almost at the same time, So there is nothing like 4 times a row. Its stupid to do one trade and see if I win or not, and then wait and trade the other one. Thats, not being efficient with your assets, and yes, it would affect your psychology more to see 4 consecutive losses, than to see 4 losses and two wins at the same time, because you know the win ratio is higher.
     
  21. Try doing it again. Seriously, open another 6 or 10 demo accounts and try this approach again. And then again...
     
  22. Epic, pressure changes everything. Since June 1995, I've seen people do well in their demo account, then get destroyed in their real account. A demo account will allow you to get your feet wet and test drive the trading platform without the pressure.
     
  23. Don't be so sure of your apparent psychological advantage, it will change when the money is real.


    It is the same as practice in any sport, for an example lets say soccer. Sure you may play awesome in practice with a couple team mates, but when you are playing infront of 50k people and against a strong team that beats 99% of the opposistion (Or, the Forex market) you will not play the same!
     
  24. Paper Trading is only good to *disprove* concepts. Any positive sense should be taken as only "not negative".
     
  25. Well you have no idea how my brain work. Im however going to risk 10 000 dollar that the currency pair USD/EUR will rise 0.85 to 1.01.

    http://www.chartflow.com/chartserver/Images/GSA9F0.png

    If it does, and I use 200:1 leverage, and then reinvest the profit. Im going to get a couple of million dollar. The only problem, is that the currency is zigzaging to much, and using 200 in leverage give you no room for error.


    I think its a 85% chance that it will rise to 1.01 within one or two years. What do you guys think? And do you guys think its better to sell the currency when its dropping in value, and just ride it when its going up, or hold it all the time?
     
  26. ^
    ||
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    poste your trades there <---
     
  27. Easier said than done.

    (if you can do that you will be able to turn $300 into $$$$$$$$ within months)
     
  28. i wish you good luck if you try this, but I'll caution you. Almost every person who started papertrading thought at one point "It can't be this easy, I'll be rich in no time!".