Demo vs Live dispute

[rb7]

I thought IB was Top of Book in Sim, which makes you jump in line for a LMT as if it were a Market if touched order.

From IB: https://www.interactivebrokers.com/en/software/omnibrokers/topics/papertrader.htm

Limitations
Although a Paper Trading Account simulates most aspects of a production account, you may encounter some differences due to its construction as a simulator with no execution or clearing abilities. These differences include but are not limited to:

• No support for some order types including: VWAP, Auction, RFQ, and Pegged to Market.
• Fills are simulated from the top of the book; no deep book access.
• Limited combo trading.
• Stops and other complex order types are always simulated in paper trading; this may result in slightly different behavior from a production account.
• Penny trading for US Options is not supported. You will be able to submit the order but it will not receive a penny fill.
• The trade simulator will reject the remainder of any exchange-directed market order that partially executes. This may or may not match behavior of a real-world exchange. Market orders received while there is no quote on the opposite side will be held until the market data arrives (i.e. until the first partial fill).
• Mutual Fund trading is not supported in a Paper Trader Account.

It is 'top of book' but you don't jump in line.

Example:
Market is 0.25 - 0.50
You send a LMT order to sell @ 0.50
Trades are printed at 0.50, but your order remains unfilled.
As soon as the market turns to 0.50 - 0.75, your sell limit order is filled (at 0.50).

 

[murray t turtle]

There most certainly is a difference as i have mentioned before, both in slippage and limit order fills.

%%
YOU have probably noticed also; your guts + anyone with sense, knows the difference in gut feel on real money/real profit /\real loss + a simulator. But that one gentleman that get's consistant bad fills on his simulator/that could actually help[price improve many times that way/LOL]

 

[Snuskpelle]

You should refrain from creating new threads when there are other similar threads.

To be honest the bots are in full swing on this thread...

 

[SunTrader]

To be honest the bots are in full swing on this thread...

IBots lol.

 

[mikeriley]

While showing a friend price action of Crude oil in a simulated account we laughed
and joked while sipping cappuccino.

10 minutes later in my live account I was cursing at the computer screen.

Yup. no difference at all.

 

[Gazillionaire]

IB sim env (paper trade) is simulating the worst case, meaning that your orders are always placed at the end of the queue. My experience with the IB sim env is that it is giving worst results than real env, not the other way around.

End of the queue? Do you mean demo orders are actually part of the direct access system? Or are the orders sent to live and demo servers separately?

 

[Onra]

You should refrain from creating new threads when there are other similar threads.

Look how interested the OP himself is:

 

[rb7]

End of the queue? Do you mean demo orders are actually part of the direct access system? Or are the orders sent to live and demo servers separately?

Paper trade environments are all simulated. Otherwise, they wouldn't be called demo.

 

[tomorton]

Number of people have posted above that demo is unrealistic as it ignores slippage etc..

This is true enough but only really significant if you're trading very short time-frames. So the failings of demo are a moot point for new traders - you shouldn't be trying to make money scalping at all.

 

[SunTrader]

Slippage is a pittance compared to psychological effects.

Demo (as in demonstration) is great for learning the platform. Reality is great for learning to trade. There is no substitute or surrogate.