Paper Trading
Author
Discussion

dalenorth

Original Poster:

918 posts

184 months

Wednesday 18th January 2012
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I have been paper trading across two equity markets and two forex markets for over a year now and my results have come in at 9258 positive points.

I already know that this is a good result, but I would have to risk a reasonable amount of capital, and more importantly time to start trading properly, am I being silly and should just take the plunge and see what happens? Or was last year a particularly freak market across my range?

It is all so tempting to go for it, but i would lose a large income that i currently have from my business, which i couldn't contine with, as the theory i have devised for my trading would keep me locked to my screen for most of the day?

DayTrader

776 posts

184 months

Wednesday 18th January 2012
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Only you can decide.

R11ysf

1,958 posts

199 months

Wednesday 18th January 2012
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As above. If you will lose a "large income" then I would suggest not to do it. Making money on paper is good but in real life things have a funny way of working out differently. Trading with, and losing, your own money mean that psychology has as much to do with trading as the technical trading itself.
If your system is that good can you not automate it so that you can continue working as a back up for the first year or so to see if it works?

I would suggest trying it live with just a small amount of money but giving up a good income for it is not so sensible. Markets change all the time, what if your system stops working after 2 months? Will you be able to get your business back to giving you the good income you were used to?

anonymous-user

71 months

Thursday 19th January 2012
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if you have managed to paper trade whilst keeping your current income, how would switching from paper to real trades on the same system cause you to lose the current income? surely it will only take the same time / effort?

dalenorth

Original Poster:

918 posts

184 months

Thursday 19th January 2012
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I have tried several test days, and it does take alot of concentration and no distractions, such as clients on the phone etc. My theory is simple, so i can look back through existing graphs at the end of the day and see what results i would of had.

Im aware there is no holly grail, but i do know that my theory was consistantly successful last year, but I don't know about 2012. I think I will give it a couple more months and if the results are still positive, I will convince myself to take the gamble.

anonymous-user

71 months

Thursday 19th January 2012
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There is a very big difference between trading and what you are doing now - in essence back testing

But sooner or later you will have to decide to take the plunge, or not...

R11ysf

1,958 posts

199 months

Friday 20th January 2012
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dalenorth said:
I have tried several test days, and it does take alot of concentration and no distractions, such as clients on the phone etc. My theory is simple, so i can look back through existing graphs at the end of the day and see what results i would of had.

Im aware there is no holly grail, but i do know that my theory was consistantly successful last year, but I don't know about 2012. I think I will give it a couple more months and if the results are still positive, I will convince myself to take the gamble.
You can't just look at graphs though. Have you looked into execution slippage?

What markets and what timeframes are you trading?