I have been paper trading for a couple of months and started to think that I had a sound strategy.
Then … when actually placing test trades on a Demo Account the wheels fall off.
The problem is that almost as soon as I enter the order it goes into negative territory. This can vary from -5.00 to over -100.00. So, even with a Stop Loss set at 20 or 30 I would get ‘stopped out’ a lot of the time in just minutes.
Frustratingly, most times the market moved correctly in the way I had traded, but my trade was unable to get off and running.
I have read and researched much, but nowhere have I seen this problem mentioned.
Sounds like your entries are “out of whack” so to speak. In fact…if it happens as soon as you enter…they are…by that amount of pips you mentioned…especially over a 100. :eek::eek::eek:
Frustratingly, most times the market moved correctly in the way I had traded, but my trade was unable to get off and running.
The past…is the past…it’s gone…forever. Markets don’t care if you had or would have or any past tense for that matter.
I have read and researched much, but nowhere have I seen this problem mentioned.
That’s how markets teach ya.
What am I doing wrong, or failing to understand ?
It sounds like you might need to go back to the drawing board in regards to your analysis of [B]when[/B] to enter the market.
Hi Huntsman
sorry to hear the wheels are coming off. I don’t know the specifics of your strategy but if it was working for you papertrading then somewhere you have changes the rules of your strategy when you demo trade, IMHO. first check that you are adhering to your original plan
best regards
When paper testing I simply chose an entry price to use with a stop loss of 30, later checking to see where the price is, and if going nicely then chose a point at which to exit. Then count the pips made ( or lost if stopped at 30).
However, when using a Demo to place a trade live, it nearly aways goes into the red immediately, although it does turn around sometimes I am concerned that I will never be able to catch a decent run. It has happened on 15 min, 1 hr and 4 hr.
I have just done an experiment in case this scenario is peculiar to the GBP/USD. I selected something quite different and went to the 30 min on EUR/CHF and waited until it deffinitely was headed upwards, placed a Buy, and it instantly showed -5.10. it did eventually go positive, but in a slow market like that if I had a stop loss of 5 I would have been stopped out immediately.
What’s your broker’s spread on the eur/chf? By definition, when you enter a trade it ‘goes against you’ in that your broker is charging you a commission to place your trade on an exchange. Your broker credits that commission to your account as soon as your trade is entered, hence you being in the red every time.
As far as your other problems, they can most likely be corrected with the proper use of a stop-loss. Or, if you like the wild swings you experience playing without a safety net, you can just enjoy the ride.
Now I am a retired school teacher, so I say that your move to do the Babypips school is the best thing you have done so far!!
I also give you a 2nd piece of counsel.
When you are ready to demo trade again, pick [U]a brand new strategy[/U].
(dump the old one).
And this time, pick a strategy that suits your personality and one that you like.
