Does anyone else Test your trading ideas with Small size?

[fan27]

Hey fan,

which sim do you use for that ?

I use AlgoTerminal/IB Gateway so testing via SIM is to log IB Gateway into the SIM account and then my desktop in AlgoTerminal connects to the IB Gateway SIM account. To switch to live, I just run my IB Gateway live account and AlgoTerminal connects to that account. Most algo platforms will follow a similar pattern.

 

[Tradex]

Markets are ever changing, what might have worked during the last 5 years, wouldn't have worked 15 years ago.

Nonsense, markets have been going up, down or sideways for centuries.

Simple trend-following techniques have been proven to work for the last 800 years.

 

[Tradex]

Because they [ Forex and Futures] do NOT move as much as stocks

Really?

The average daily move of the S&P 500 is 1%.
Same thing with the major currency pairs.

No difference.

 

[murray t turtle]

Testing trade setups and trade management strategies is useful.

I'm curious, how do you approach live tests in your trades?

With free stock and ETF commissions for USA traders now, its the perfect time to test using small size..

I typically test using just 20 or 30 shares at a time, then scale. Any thoughts?

%%Best way to do that;
start with small size. most etfs are so liquid, it pays.

Ive got my smallest UPROsize all year/ because summer ralley tends to be weakest/looks stronger summer than usual.BUT I have a cash etf order in, not more upro @ this time...………...…………………...………………………………………………………………… I see day trades in TZA,twm, but i'm not doing that daytrade today.
I never test like one did on utube/ one qqq/amtd because I figure not enough profit for market maker/ one share; but that dollar amount is ok

 

[murray t turtle]

I test on SIM and if everything executes as expected, I go full size with real money. This works for my setup as there is virtually no technical difference between my SIM and Live setup and my trade size is small enough as to not impact my ability to get filled.

%%
OK/ I never do it thatway/ but I may put on a papertrade/ then trade. The difference is I never trust any simulator...………………………………………………………………………………………..

 

[systematictrader]

Really?

The average daily move of the S&P 500 is 1%.
Same thing with the major currency pairs.

No difference.

We not talking about the sp500 we talking about individual stocks

How often you see a currency double or drop in half? and in how long? much slower and less often than stocks

 

[Laissez Faire]

It seems like most people start trading with live money with unproven and untested methodologies.

 

[Gaslight Capital]

size..

I typically test using just 20 or 30 shares at a time, then scale. Any thoughts?

Even option commission and fees are now so low as to allow live market small size testing. I do the same with shares and will use 10 shares as a test lot.

 

[Tradex]

We not talking about the sp500 we talking about individual stocks

Individual stocks ARE part of the S&P 500. If it moves 1% daily that means stocks move 1% daily, on average.

 

[Tradex]

It seems like most people start trading with live money with unproven and untested methodologies.

True, but on the other hand if people start trading with proven and backtested methodologies, winning traders will stop winning!