Demo server is feeding data to Demo account using live trading feed from broker and their trading tele-data. Live server is feeding data to Live account using the same life trading feed. But the difference is always between the server that is feeding the data.
1) Adding Delay in live trading.
Different server offer different Bid-Ask spread and offer different Bid price when the currency start to move or trend up/down. So the demo results you get is different from live results and live results also different as its uses different live server, The way to close the gap is to add delay between sampling your strategy. The demo data smallest data is 1 minute. but live data changes every 1 second. By adding in delay of 1 or 5 minute, you are better in closing the gap.
2) Choose Indicate using 15 minutes or 1 hour or 1 day.
3) To buffer 5 to 8 pips of loss.
Even after you add in the protection of Bid-Ask difference not more then 7 pips. Meaning, the trade will only execute if the Bid and ask spread is less then 7 Pips, this does close the gap but due to trading server busy, allowance (0 to 2 pips) to match your buy/ask price and the Swap (few pips), always test your simulation with profit setting minus 5 to 8 pips to cover those. And Stoploss setting adding 5 to 8 pips. Else you will see different win/loss trading.
By following the above mention items, you will be closing the gap between Demo and LIve trading. Thank you.
While most books on trading deal with general concepts and shy away from specifics, Forex Patterns and Probabilities provides you with real-world strategies and a rare sense of clarity about the specific mechanics of currency trading. Leading trading educator Ed Ponsi will explain the driving forces in the currency markets and will provide strategies to enter, exit, and manage successful trades. Dozens of chart examples and explanations will guide you each step of the way and allow the reader to "look over the shoulder" of a professional trader hard at work at his craft.
This book provides traders with step-by-step methodologies that are based on real market tendencies. The strategies in this book are presented clearly and in detail, so that anyone who wishes to can learn how to trade like a professional. It is written in a style that is easy to understand, so that the reader can quickly learn and use the techniques provided.
Forex Patterns and Probabilities: Trading Strategies for Trending and Range-Bound Markets (Wiley Trading). Click here to see 58 customer reviews and choose from 35 suppliers
Finally, the first comprehensive guide to MQL programming is here! Expert Advisor Programming guides you through the process of developing robust automated forex trading systems for the popular MetaTrader 4 platform. In this book, the author draws on several years of experience coding hundreds of expert advisors for retail traders worldwide. You'll learn how to program these common trading tasks, and much more: - Place market, stop and limit orders. - Accurately calculate stop loss and take profit prices. - Calculate lot size based on risk. - Add flexible trailing stops to your orders. - Count, modify and close multiple orders at once. - Verify trading conditions using indicators and price data. - Create flexible and reusable source code functions. - Add advanced features such as timers, email alerts and Martingale lot sizing. - Avoid common trading errors and easily troubleshoot your programs. - Adjustments for fractional pip brokers and FIFO. - Plus, learn how to create your own custom indicators and scripts! Whether you're a beginner or an experienced programmer, Expert Advisor Programming can help you realize your automated trading ideas in the shortest amount of time. This book features dozens of code examples with detailed explanations, fully-functioning example programs, and reusable functions that you can use in your own expert advisors!
Expert Advisor Programming: Creating Automated Trading Systems in MQL for MetaTrader 4. Click here to see 19 customer reviews and choose from 14 suppliers
Algorithmic trading and Direct Market Access (DMA) are important tools helping both buy and sell-side traders to achieve best execution.
This book starts from the ground up to provide detailed explanations of both these techniques:
- An introduction to the different types of execution is followed by a review of market microstructure theory. Throughout the book examples from empirical studies bridge the gap between the theory and practice of trading.
- Orders are the fundamental building blocks for any strategy. Market, limit, stop, hidden, iceberg, peg, routed and immediate-or-cancel orders are all described with illustrated examples.
- Trading algorithms are explained and compared using charts to show potential trading patterns. TWAP, VWAP, Percent of Volume, Minimal Impact, Implementation Shortfall, Adaptive Shortfall, Market On Close and Pairs trading algorithms are all covered, together with common variations.
- Transaction costs can have a significant effect on investment returns. An in-depth example shows how these may be broken down into constituents such as market impact, timing risk, spread and opportunity cost and other fees.
- Coverage includes all the major asset classes, from equities to fixed income, foreign exchange and derivatives. Detailed overviews for each of the world's major markets are provided in the appendices.
- Order placement and execution tactics are covered in more detail, as well as potential enhancements (such as short-term forecasts), for those interested in the specifics of implementing these strategies.
- Cutting edge applications such as portfolio and multi-asset trading are also considered, as are handling news and data mining/artificial intelligence.
There is also a website for this book at www.algo-dma.com
Algorithmic Trading and DMA: An introduction to direct access trading strategies.