Demo
server is feeding data to Demo account using live trading feed from
broker and their trading tele-data. Live server is feeding data to Live
account using the same life trading feed. But the difference is always
between the server that is feeding the data.
1)
Adding Delay in live trading.
Different server offer different Bid-Ask
spread and offer different Bid price when the currency start to move or
trend up/down. So the demo results you get is different from live
results and live results also different as its uses different live
server, The way to close the gap is to add delay between sampling your
strategy. The demo data smallest data is 1 minute. but live data changes
every 1 second. By adding in delay of 1 or 5 minute, you are better in
closing the gap.
2) Choose Indicate using 15 minutes or 1 hour or 1 day.
Demo
and live data may be difference when you looking at seconds changes and
minutes changes. But if you using indicate like Moving Average, CCI,
RSI, Stochastic, Bollier Band, choose a time frame of 15 minutes and
above. The difference you have from Demo and Live will be very small.
Like wise if you using Open/Close valve or High/Low valve of previous
15M/1H/1D, the indicate will not show much different. Thus closing the
gap between Demo and Live data. Avoid using 1 minute and 5 minute data
for indicator, during large price movement, will yield different
indicator result giving false trigger trades.
3)
To buffer 5 to 8 pips of loss.
Even after you add in the protection of
Bid-Ask difference not more then 7 pips. Meaning, the trade will only
execute if the Bid and ask spread is less then 7 Pips, this does close
the gap but due to trading server busy, allowance (0 to 2 pips) to match
your buy/ask price and the Swap (few pips), always test your simulation
with profit setting minus 5 to 8 pips to cover those. And Stoploss
setting adding 5 to 8 pips. Else you will see different win/loss
trading.
By following the above mention items, you will be closing the gap between Demo and LIve trading. Thank you.
source http://business.ezinemark.com/closing-the-gap-between-mt4-demo-and-mt4-live-trading-7d33e92bd588.html
While most books on trading deal with general concepts and shy away from specifics, Forex Patterns and Probabilities
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Expert Advisor Programming guides you through the process of developing
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Algorithmic trading and Direct Market Access (DMA) are important
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