Newbie - Demo trading

holmzey

Recruit
Messages
6
Hi all,

New trader starting out his journey here. I have been demo trading about 2 months and have been learning as much as i can through books webinars and sites like this.

I did trade briefly about 6 years ago for 6 months or so and had no idea what i was doing with no real strategy. I didn't blow an account or loose a lot but went straight into live trading as i thought it cant be that hard! lol

I guess why i signed up was to when i am ready start a journal and post my thoughts and trades down for others to see...get some accountability and try keep me honest to my strategy.
 

FxMaster

Lt. Colonel
Messages
8,345
Hi all,

New trader starting out his journey here. I have been demo trading about 2 months and have been learning as much as i can through books webinars and sites like this.

I did trade briefly about 6 years ago for 6 months or so and had no idea what i was doing with no real strategy. I didn't blow an account or loose a lot but went straight into live trading as i thought it cant be that hard! lol

I guess why i signed up was to when i am ready start a journal and post my thoughts and trades down for others to see...get some accountability and try keep me honest to my strategy.
Welcome on board man, Demo trading is a key to open door called forex :) so if you need any advice regarding trading then you can ask us directly and we are happy to help you :)
 

holmzey

Recruit
Messages
6
Thanks @FxMaster

Does the below strategy look sound as a starting point for a round of demo testing?
The strategy is pretty simple and basic with not loads of indicators or steps so hopefully not too difficult to stick to.

It mainly uses price action and S/R lines
Time frame - daily & 4hr

ENTRY

  • Entry must be with trend - Trend defined by my analysis not an indicator
  • Entry must be around S/R area or Trend line - Trend line with at least 2 hits
PRICE ACTION

  • Indecision (pin) candle required
    or
  • Engulfing candle with three previous candles smaller
RISK

  • Max 0.75% - lot size scaled to meet this in conjunction with stop placed at a either 1.5ATR or slightly beyond a previous high or low
REWARD
2 to 1 risk ratio minimum
first take profit just below next major support or resistance

Let me know your thoughts thanks
 

FxMaster

Lt. Colonel
Messages
8,345
We
Thanks @FxMaster

Does the below strategy look sound as a starting point for a round of demo testing?
The strategy is pretty simple and basic with not loads of indicators or steps so hopefully not too difficult to stick to.

It mainly uses price action and S/R lines
Time frame - daily & 4hr

ENTRY

  • Entry must be with trend - Trend defined by my analysis not an indicator
  • Entry must be around S/R area or Trend line - Trend line with at least 2 hits
PRICE ACTION

  • Indecision (pin) candle required
    or
  • Engulfing candle with three previous candles smaller
RISK

  • Max 0.75% - lot size scaled to meet this in conjunction with stop placed at a either 1.5ATR or slightly beyond a previous high or low
REWARD
2 to 1 risk ratio minimum
first take profit just below next major support or resistance

Let me know your thoughts thanks
Well, Demo gives us to test our strategies. That's why Demo trading is mandatory before we go live to risk our valuable funds. Try some more strategies and check which one is valuable to try on live. But do not test it with a high volume of money and trades, check it with low amount first :)
 

holmzey

Recruit
Messages
6
We

Well, Demo gives us to test our strategies. That's why Demo trading is mandatory before we go live to risk our valuable funds. Try some more strategies and check which one is valuable to try on live. But do not test it with a high volume of money and trades, check it with low amount first :)
I am currently Demo trading this strategy with the same capital i would be live trading when i get to that point, so i am used to the lots sizes and values i will be using on trades.

I will trade this strategy until i have enough information to work out what win percentage i can get with it and if its suitable to go live. Also i will not be live trading until i can get a number of months of consistency and be profitable. I am in no rush to get into live trading.
 

FxMaster

Lt. Colonel
Messages
8,345
I am currently Demo trading this strategy with the same capital i would be live trading when i get to that point, so i am used to the lots sizes and values i will be using on trades.

I will trade this strategy until i have enough information to work out what win percentage i can get with it and if its suitable to go live. Also i will not be live trading until i can get a number of months of consistency and be profitable. I am in no rush to get into live trading.
Indeed, this is what you must follow. Most of the newbies turn their money into Ashes just because they don't get the proper knowledge of trading.
 

RachelEB

Corporal
Messages
70
Hi all,

New trader starting out his journey here. I have been demo trading about 2 months and have been learning as much as i can through books webinars and sites like this.

I did trade briefly about 6 years ago for 6 months or so and had no idea what i was doing with no real strategy. I didn't blow an account or loose a lot but went straight into live trading as i thought it cant be that hard! lol

I guess why i signed up was to when i am ready start a journal and post my thoughts and trades down for others to see...get some accountability and try keep me honest to my strategy.
Demo is the best way to get a sound strategy in place and the confidence to put your money on the line.

No limits to how long that can take, each trader will vary in that respect, but it will come, the hardwork and patience is definitely worth it in the end.
 

DaveT

Sergeant
Messages
227
Good luck with this and yes you should demo your strategy first. In fact you should never stop demo-ing strategies. It's a moving target and you will never stop learning
 
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