What is the diff between real and simulated trading ?

Discussion in 'Trading' started by traderwald, Aug 19, 2018.

  1. goslow

    goslow

    Hi. I spent several years in a sim, while working jobs that did not allow time to day trade effectively. I also spent much of 3 years with a simulator, while working on methods and software. Conclusions?

    Sim helps with some things in a way real trading cannot without being prohibitively expensive. However, sim delays building emotional comfort needed to trade real money. So, use sim, but be aware it can be a distraction.

    Sim does not penalize exploring risky modes you would never test with real money. A quandary is this: when strategies or trading styles are found that are profitable in sim, you may not allow yourself to put them into practice.
     
    #11     Aug 19, 2018
    Gotcha likes this.
  2. Turveyd

    Turveyd

    A proper real tick data looks and is perfect so you can practice scalping market times at the weekend where you can't demo them live, plus m1 candle data is cheating cant backtest day trading off that really.
     
    #12     Aug 20, 2018
  3. smallfil

    smallfil

    Simulation is make believe trading where emotion is completely removed. When you go on to real trading emotion is there. Fear and Greed. There is no going around it and when you lose monies, it is for "real". As others have already noted, trade small amounts until you master real life trading then, you can go trade with confidence. You got to get thru with the mental part of losing because you are going to lose monies!
     
    #13     Aug 20, 2018
    murray t turtle likes this.
  4. maxinger

    maxinger

    simulated trading - 99% technical, 1% mind control
    real trading- 99% mind control, 1% technical
     
    #14     Aug 20, 2018
  5. RedDuke

    RedDuke

    Disagree. No mind control will help you win if system is not performing.
     
    #15     Aug 20, 2018
    qxr1011 likes this.
  6. destriero

    destriero

    It can be summed up by the following equation:

    SimTrading - RealTrading = KimKlaiman

    Whereas Kim is a +integer
     
    #16     Aug 20, 2018
    mjf61 likes this.
  7. qxr1011

    qxr1011

    there are some technical differences , but it mostly on execution side, and depending on the market and instrument

    sim or paper trading is an invaluable process of training: it saves you money, time, and risk of being decimated by the market while you developing your trading method
     
    #17     Aug 20, 2018
  8. tommcginnis

    tommcginnis

    What is the diff between real and simulated trading ?

    The ability to withdraw funds, Silly!

    :D



    Still???
    Name for me a stressful occupation that does not have Simulations as part-n-parcel of training, and I'll buy you a beer.
    C'mon guys. It's 2018.
    :cool:
     
    #18     Aug 20, 2018
    ElectricSavant and speedo like this.
  9. %%
    Exactly.
    Paper trading can be real helpful, on leaning, learning more .BUT so called ''dry firing ''can help win in target shooting, but NOTHING like burning powder ,when money is on the line/recoil, noise+ muzzle blast +the crowd is watching.Brokers like sim trading so OK by me.:caution::cool::cool::cool::cool::cool::cool::cool:
     
    #19     Aug 20, 2018
  10. Robert Morse

    Robert Morse Sponsor

    POTUS...........
     
    #20     Aug 20, 2018