Sim vs Real Money Trading

RedDuke · Nov 27, 2018

Overnight said:
And more to the point, there is something we all lose track of when trading sim...The broker will simply not allow us to trade anymore. "You just lost 50% of your account equity today, and you want to go 50 deep on a NYMEX crude position? We won't let you, because you simply don't have the initial margin!"

Most simulators will allow you to enter that trade, while the broker will not. Ergo, results you get in sim are FUBAR.

One of the things you need to code. All my sim algos had this built in.

wrbtrader · Nov 28, 2018

MACD said:
The answer is: Keep the winning methods. Eliminate the emotions. Really Quite Easy.

Why do you think most can not "eliminate the emotions" if its quite so easy ?

wrbtrader

ironchef · Nov 28, 2018

GotherL said:
Automated systems don't work when it comes to daytrading. Way too many variables.

I thought all HFT are automated?

themickey · Nov 28, 2018

wrbtrader said:
Why do you think most can not "eliminate the emotions" if its quite so easy ?

wrbtrader

Ya! We love getting married. To positions.

RedDuke · Nov 28, 2018

ironchef said:
I thought all HFT are automated?

They are, but they not really trading, just technology advantage to front run so to speak.

ironchef · Dec 4, 2018

RedDuke said:
They are, but they not really trading, just technology advantage to front run so to speak.

Isn't front running illegal?

RedDuke · Dec 4, 2018

ironchef said:
Isn't front running illegal?

It is if done on the floor by broker for example, but totally legal if computer does it. Go figure.

ironchef · Dec 7, 2018

RedDuke said:
It is if done on the floor by broker for example, but totally legal if computer does it. Go figure.

What if a broker uses computer to do it?

qlai · Dec 12, 2018

GotherL said:
I took $500 and turned it close to a million in just 800 trades on the sim. It was simple...

You don't see a problem with this? Unrealistic Sim gives you unrealistic results, that's all.

qlai · Dec 12, 2018

ironchef said:
What if a broker uses computer to do it?

Front running based on inside info (like holding/knowing big customer order) is illegal. Computers guess that there's big order. Now, the controversy comes when exchanges allow some order types that may be used to extract info.