Paper Trading

Discussion in 'Trading' started by tbomb, Apr 17, 2004.

  1. tbomb


    Could some please provide me with the best free website for simulated trading. Thank you!
  2. Most DA brokers have DEMO's you can try out...I like the demo just because im going with IB when i go live.
  3. PetaDollar

    PetaDollar Moderator


    It works with an IB account, however there is a new "Lite" version which uses a free real time feed, so you can sim trade a few things without even a brokerage account.

    Both programs are freeware.

    Another great feature is that is also works in "Live" mode (real $$), so you can "practice like you play".
  4. cuz


    I respect your willingness to learn and try, and I don't want to discourage you or sound negative, but Demo's give you instanteous fills and your emotions are not " IN PLAY" when it's not real money.

    It does not work that way in real life/time.
    So take it with a grain of salt ,and just use it to allow yourself the opurtunity of getting familiar with your software(Trading Platform)

    Good Luck
  5. PetaDollar

    PetaDollar Moderator

    Honestly I hate when I have to sim trade (to test a new method), but it has it's place in real-time forward testing. If you do it right, "keep it real", it's a worthwhile exercise. Cuz is right, you've got to pay attention to the fills and make sure they correspond to reality. One way to so this is always use market orders while simulating.

    Another thing worth mentioning about reality vs. sim is that the shorter the time scale, the less accurate the sim will be. Thus, sims (at least the ones I have used) are virtually worthless to test extreme scalping methods (moves less than 10x the spread).
  6. dbphoenix


    The point of paper trading is not to determine the state of one's psychological health, but to test a strategy and/or set of tactics. Granted, all that will come into play once real trading is undertaken, but to put real money into the market by trading a system that has received only a computerized backtest is amateurism at its finest.
  7. tbomb


    Here's the situation, opinions welcome.

    I work for a broker-dealer and we have our own direct access platform for institutional investors and hedgies. I assist working orders on the desk with other people's money, so its a far cry from prop trading. We have a demo, but it's not really suitable for prop trading. Since I couldn't sit there all day and monitor the positions all day, the real-time execution prices prob wouldn't matter so much to me anyway. With my schedule, I suppose the style would closer to swing trading.

    I've interviewed at FNYS, Hold and ETG(operational). I was a little green and told to try back. I'm fully licensed(7,63, and 55). Living in NYC, I really can't afford to work with no salary, and the idea of putting down $5k when I've never "traded" seems a bit absurd.

    I've contacted DE Shaw and Schonfeld, but to know avail. The percentage of people that are successful in this business is extremely low, and finding a mentor or decent training program is most probably what is most important to me.

    Any suggestions?
  8. some have hinted already...

    Simulators are useful when your testing new strategies, new broker execution platforms or anything your unfamiliar with...

    However, if your just trying to get a feel for the market and/or to see if you have the discipline to execute a particular strategy...

    Real money is the only way to go with a small position size.

    Once things start clicking the way you want it to go...

    That's when you can start trading via your normal position.

  9. Hey Cuz...then what should he (she) do? Throw all caution to the wind and lose a bunch of $$$$ trading live?

    This is why I love this board so much. The post by Cuz was intended to be a positive one, but in actuality it was really more of a negative one.

  10. I agree with dbphoenix 100%...Demo's are 100% different than the real thing, but thats not the point of the demo..>Its not ment to see if your mentally fit for trading, but rather learn strategy and such....

    If you want to test your psychological ability in day trading...Get a job, get your first pay check, through it out the window of your apartment onto a busy street, then sit down for 10 minutes wondering if its GONE!...Then go get it...:D
    #10     Apr 17, 2004