I have opened up a paper trading account on the side to test new strategies, large position sizes etc. https://www.marketwatch.com/vse If anyone is interested in joining and keeping each other updated with our progress, findings etc feel free to PM me.
It's best to only open a paper account (use of a simulator) with your broker instead of with a 3rd party location. It will allow you to familiarize yourself with your broker trade execution platform before trading with real money. These types of 3rd party paper trading accounts (e.g. marketwatch) are really just gaming that doesn't allow you to develop any skills that can be transferred to real money trading. Further, you want to use a professional trade journal software for your quantitative statistical analysis that works with you broker regardless if you're on the simulator or trading with real money.
I see what you are saying. I already tried paper trading with scottrade and interactive brokers and their interfaces sucked. Order entry is only one of the skills that a trader needs. The most important thing is whether my strategy works with large position sizes over a long period of time like a year because that is the only way for me to make a living out of this. If it doesn't work then everything else is just wishful thinking. I think every new trader needs to forward test their strategy in real time over a long period time to find out if they actually have a viable strategy. If the results at the end of the 1yr don't demonstrate consistent profits then nothing else matters. In other words if someone cannot churn out consistent profits over a long period of time without the emotional element that comes with real money then it is pointless for them to attempt to trade with real money. And once I have proved to myself that I have a viable strategy I will be less emotional with real money because I will have the confidence that I am working with a strategy that actually works without a shadow of doubt.
Paper trading simulation accounts are relatively meaningless. Unless you plan to deploy some automatic, systematic trading formula. But for normal, discretionary daily trading (or whatever time frame)...you absolutely have to learn the hard way. Each trade is completely different in every way. -- regardless of how many hours you put into simulation practice. You have to learn to accept your emotions and confidence...they will never go away. Like most things in life...your own mind, is usually your worst enemy.
I have a systematic trading formula and I am curious to see how much I would make applying it methodically without the emotional element that comes with trading real money.
%% Much more , with paper trading; unless you allow for slippage, comissions.Simulators maybe much more harmful unless you have a photo memory. Paper trading could help with price levels; profit level are something else
I very much like your quest to backtest. You are smart enough to some degree factor in liquidity and slippage. PLUS... years ago I knew traders who simply learned good things doing this that eventually lead them to become bigger winners. Obviously Quant firms do this day and night, but I have heard of small traders finding this very valuable. "Sometimes walking a promising path produces good results even if those results are very, very different from what was hopped for."
Of course trading must be done and picking the right broker or prop firm is important, sometimes critically. There is nothing wrong with backtesting along the way and even after becoming a strong trader. Some winners backtest. It is my understanding that Rin4et has traded and has an account to trade when she thinks there is value. Striving to connect with great traders (preferably on a personal level) can be of enormous benifit, as well. ____ Note: In Highly Competitive Areas, experience is often, but not always, of limited importance without being paired with: being around the right people. "Being around winners often rubs off on a savvy person"