Trading Skills

Anybody how makes a generic comment about papertrading being useless obviously has no technical background.

Most models in systematic trading are so mathematically complex you could never do them manually, let alone test them on historical data.

Nowadays, only a fool would trade without testing his strategy against a suitable source of data.

 

in sim I could generate pretty consistent 50% returns in 10 trading days. But that was 4 years ago, i'll never go back now that I am live.

 

Simulators are very useful during the developing stages of a trading plan and useful for testing a new broker trading platform.

However, as soon as the trading plan has been completed or a trader understands how to navigate a new trading platform...it's time to go live trading with cash.

Mark

 

Successful trading in my humble opinions consists of two parts:

1) Having an edge, a profitable plan

2) Executing the plan to perfection

Unless you trade automated, sim trading helps quite a bit reaching 1) but does absolutely nothing for 2).

Best of luck,
No Heat

 

Beware, at least one simulator platform buys on the bid and sells on the ask, just as if you were a market maker... Under those conditions it is extremely easy to make consistent money even with commissions subtracted. Imagine how easy it is for market makers who have extremely low costs per trade.
(The platform that does this is the TOS paper money platform.)

 

I have been trading for years and I still get back on the sim on a regular basis. Especially to try out new strategies, ideas or total systems. It is no different than pros who strive to excel in any other vocation. True, not quite the same as live but mistakes don't cost.

 

Simulated accounts are a waste of time. Enough said.

 

I get an idea – I try it out on sim

I get back off a vacation, from being sick, or time away – I sim a bit to get focused

I’m in the process of changing platforms – damn right I’m simming on it first before going live


Sim is a tool – nothing more, nothing less – and like Tradeshark said – it doesn’t cost a dime – so why not utilize


Does trading money bring new and unique challenges – of course – but then what hell in this business doesn’t

Does sim results automatically transfer over to real trading results – nope


Regards

RN

 

The only people who say "don't sim trade" are people who sell shitty indicators and shitty systems because they don't want you to test them and realize they don't work before you pay for them.

Sim trading is great except it doesn't simulate emotions or slippage. But it's better than nothing.

Now I predict 5 pages of replies of people somehow contesting that previous statement.

 

I can do 100% <i>a week</i> consistently on most sims, but only did it once on a real account.
Sims are good to check if a system works, but are usually not the best indicator of expected returns on a live account. Most of them give really accurate fills, the problem for most people is usually emotional, specifically fear or greed, (me also) and it's extremely difficult to learn to overcome those emotions on a sim.