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I have been reading and studying about as much as I can take it. It is now time to get a paper trading account.
Any recommendations on what works well with simulated e-mini trading? I dont mind paying a small access fee as long as it isnt anything outrageous.
Thanks for any advice |
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Do's or Don'ts of Simulator Trading:
* If you have not selected a broker...only use the simulator from a few brokers your considering opening a trading account with.
* If you have selected a broker...only use their simulator.
* Simulator should only be used to learn the broker execution platform and not for testing a new method unless your testing a built-in strategy code that is an option in the simulator itself.
Thus, use a backtesting software or manually test your strategies and then move into real money trading with a small position size but only when you feel comfortable in using your broker trade execution platform.
Most traders takes about a month to fully learn their broker execution platform while simulating trading.
Then it usually takes an additional 1 - 2 months to feel comfortable using the platform with real money on the line.
* No trading plan, no well defined strategy regardless if its profitable or not...
Don't use a simulator until your ready to simulate your method and your ready to learn how to use your broker execution platform.
There's also another use for the simulator.
Lets pretend your one of those traders that consistently makes profits in the morning a.m. trading session but yu tend to lose those profits in the afternoon p.m. trading session...
Only use a simulator in the afternoon p.m. trading session until you can determine (resolve) your trading problems for that trading session.
However, the best solution in that particular situation is to not trade (no real money nor simulator) in the afternoon p.m. trading session.
In addition, when you do use a simulator, only use the exact same position size that equals what you will be using in real money trading when you first plan to go live with real money trading.
For example, lets say you will eventually trade 10 ES contracts (you have the account size for such) but you want to take it easy in the beginning and only trade 1-2 contracts.
Thus, when you simulate trade...only do it with 1-2 contracts and not 10 contracts.
Summary: It's only time to use a simulator when you're satisfied with your method's backtesting results, you have a well defined trading plan and your now ready to learn your broker trade execution platform.
Too many traders make the classic mistake of using a simulator while they don't have a trading plan nor a proven method via backtesting.
This mistake will cause trading problems when you do go to real money trading.
Mark
(a.k.a.
NihabaAshi) Japanese Candlestick term
"Volatility Analysis is a doorway to consistent profits."