Demo to Live Account - Differences

[CNS]

Hello all,

I've been practicing and learning on the demo account side of IG's platforms and seem to have a solid working strategy that I'm happy with. 

My question is - Is there and wild differences on the 'live' account anything that I need to be aware of, or will the live platform operate in the same way as the demo account. Apart from the obvious that my capital is live, I'm meaning in the fundamental operation of using the account. 

 

For instance I've been using the spread betting side of the system and understand how to open positions, close and using stop & limit levels and happy with my results, when I transfer to the live platform I'm going to open a few positions as and when I feel necessary. I'm just wondering if there is anything which will appear different or if I will be met with any fundamental operating process' - I've read a post on this forum which stated a user was buying shares and they were immediately being sold...

 

Hope any information can alleviate my concerns - thank you for the contributions in advance and keep up the brilliant advice as part of these forums - there's plenty of information hidden in some of the forum links. 

 

Chris

[Caseynotes]

Hi @CNS, the definitive answer is yes and no. Demo is a useful tool for learning the platform, the operation of deal and order tickets and the general mechanics of the thing. Demo is also useful for trialing strategies to get a basic feel as to how they may workout live but there are some differences.

The demo and live feeds are different though not hugely so but on live you will suffer slippage and partial fills during times of increased volatility. As you mention there is a huge psychological difference when going live and a string of losers will shake confidence in any strategy and the  temptation to tinker can be irresistible. Make sure you keep a record of all your trades to give an overall view of how well a strategy and yourself are doing.

Always start out live with the smallest bet size allowed with a view to build up as confidence grows, most do it the other way round. They start out on max bet size and when things start to wobble and the account decreases they belatedly start decreasing bet size to save the account while confidence in themselves and the strategy crumble. They are then left with no account, no strategy and no confidence and that is the story of the majority who take up trading.

So think long term and think to start small with a view to build up. The number one priority to protect your account, making a profit is only number two. 

[Ninja]

1 hour ago, Caseynotes said:

Hi @CNS he demo and live feeds are different though not hugely so but on live you will suffer slippage and partial fills during times of increased volatility.

I am curious, is this because it is far too complex to simulate real market conditions on a demo account? As in you cannot simulate how many shares are actually available at the price you ordered.

Also, are you able to cancel the remainder of your order and keep what you've managed to 'catch' if it takes far longer to fully execute than expected? Like a few days where you would pay a commission per day. 

[Caseynotes]

Hi @Ninja,  in a way yes, the live market is too complex to simulate in real time. Demo platforms were developed as test beds for technicians to test and develope new systems for the improvement live platforms and that remains their primary function. Their use as a practice platform for clients is a secondary consideration.

For partial fills there will be a check box to determine the course of action if only partially filled, it will be either accept partial fill or cancel order.

 

[CNS]

@Caseynotes firstly thank you for the response. I didn't even realise that you had responded as I didn't get a notification. 

Thank you for your sound advice and I agree with the advice that profit is secondary. 

 

Thank you for your response. 

 

Chris