Forward testing on demo: what's your protocol?

Backtests flatter; forward tests reveal. Running a new setup on demo for a set period — with the same size and rules you'd use live — is the bridge between theory and money.

Forward testing on demo: what's your protocol? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your protocol?

  • how long you forward test before going live
  • what failure looks like during the test
  • how you handle demo fills that don't match live conditions
Forward testing on demo: what's your protocol? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The demo vs live guide covers the gap between the two environments.

Background: Demo vs live trading: what changes when real money is on the line

A strategy that works on a demo account can fall apart in a live one. The differences in execution and psychology, and a sensible way to make the switch.

Is demo trading the same as live trading?

No. Demo accounts can fill orders more smoothly than live markets, and losing virtual money doesn't create the same pressure as real losses, so live results are usually worse.

How long should I trade on a demo account?

There's no fixed period. A common approach is to follow a written plan for at least a few dozen trades, record them in a journal and move to live trading only with the smallest position sizes.

Read the full guide

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