My EA: Demo make profit while live account make loss, Why?

 

My EA have excellent for back test from 2000 - 2009, event 2 first month of 2010.

But it does not act well in a live account.


I run EA for Demo and Live Account at same time on 2 different computers.

It made quite different result. Demo account made profit while live account made loss. It's impossible !


What problem ? any cheating of broker?

If any one have experience, please help.

 

D

Not impossible, not even improbable

Is certain that results will differ - see this thread

No cheating broker necessary - its just the real market

Good Luck

-BB-

 
Dohung:
What problem ? any cheating of broker?

They don't cheat cause they don't promise anything about their DEMO server. But the truth is that DEMO servers differ greatly from LIVE servers. How much they differ depends on the specific broker.

Generally, EA's that trade short-term on small time-frames and rely on inner M1-bar movements, will be greatly affected by these differences. EA's that trade long-term on large time-frames are usually less affected.

 
gordon:

They don't cheat cause they don't promise anything about their DEMO server. But the truth is that DEMO servers differ greatly from LIVE servers. How much they differ depends on the specific broker.

Generally, EA's that trade short-term on small time-frames and rely on inner M1-bar movements, will be greatly affected by these differences. EA's that trade long-term on large time-frames are usually less affected.


Yeah,

My EA trades on M1 frame (any very successful).


It's seem that no way to test the "real" result of EA before using for live trades ????

However, I should not test EA on live account (that I may loss) RIGHT?


A bit crazy !

 
Dohung:

My EA trades on M1 frame (any very successful).

An EA's success can ONLY be measured in a live account... Don't assume it's profitable before that.


It's seem that no way to test the "real" result of EA before using for live trades ????

However, I should not test EA on live account (that I may loss) RIGHT?

The fact that testing an EA in Tester/Demo produces different results than Live, does not mean that these results are not useful to asses the EA. The differences between Tester/Demo and Live account should be taken into consideration when interpreting the results and reaching conclusions (this is not always trivial).


Fortunately, there are ways to avoid this:

1. Test EA's on Live micro lot accounts with small sums before putting a lot of money on 'normal' Live accounts (usually refereed to as 'Classic' accounts).

2. Avoid EA's which trade short-term on low time-frames and rely on tick-level data.

 
Dohung:


My EA trades on M1 frame (any very successful).

Did you download history or just run with what comes with the trader. My first EA grew $100.00 to 111 million is 3 years with the later, lost everything with the former and that was just in the optimizer, forget live demo or real.

Likewise history before 07 is very suspect on small time frames.

In the tester spread doesn't change and trades are instantaneous, in demo trades are quick, real they are not.

Reason: