1 pip difference between live and demo

 

I don't use EAs on a live account, so I did not notice this before, now I am testing and EA on a real live account and on a demo account at the same time, I did not know there is a 1 pip difference between live and demo account till today

Its not a big deal I just wanted to share this info

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Client Services : Hello, this is xxx. How may I help you?

you:hi, on the demo account I have my orders filled 1 pip before the real live account ? any reason why ?

you:same setup 100%

you:its just on the demo I got 1 pip of difference

Client Services : Yes, the reason is because with a demo account, funds aren't being sent to the bank to find another person to fill the other end of the order. But on a live account, your funds have to reach the bank and the other side of the trade needs to be filled too. This causes a possible delay when compared to a demo account.

you:thanks a lot

Client Services : Does that make sense?

you:kind off

you:still I thought a demo is 100% like real

Client Services : Basically the software on your platform automatically fills the order for a demo account because there isn't really a 'real order' to be filled.

you:make sense now

Client Services : But with the live account, when you place a Buy trade, the bank has to find somebody to fill in the Sell side of the trade.

Client Services : Ok, great...

Client Services : Is there anything else that I can help you with today?

you:and if I may ask ?

Client Services : Sure

you:this is the same with all brokers ?

you:I mean do you think its the same with other brokers

you:cause it has nothing to do with xxx right ?

you:its the way MT4 works

Client Services : Yes, it has nothing to do with xxx. It's just the fact that live orders need to be filled with both a buyer and a seller.

Client Services : On every transaction.

you:ok thanks for the info and have a nice day

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xxx is the broker name I have removed it

 

Interesting, haven't see this posted before. Makes sense though. Has there been any deviation from 1 pip or can the 'delay' referred to result in bigger differences?

 
omelette:
Interesting, haven't see this posted before. Makes sense though. Has there been any deviation from 1 pip or can the 'delay' referred to result in bigger differences?

I am not sure on the long run, but the results on live and demo are not the same, on exit and on entry I got 1 pip difference.

 
MiniMe:
I am not sure on the long run, but the results on live and demo are not the same, on exit and on entry I got 1 pip difference.

Live trading and demo trading are not the same. It has been said many times before and especially with MT4. This 1 pip difference can turn a winning EA into a lossing one, especially with a scalping EA. But what can you do?

 
lexygoo:
Live trading and demo trading are not the same. It has been said many times before and especially with MT4. This 1 pip difference can turn a winning EA into a lossing one, especially with a scalping EA. But what can you do?

I can see the results now on my live account and on the demo account, big difference and its only two days of tests, while some of the trades are closed on TP on the demo account, same trades are still pending on the live account .

 
MiniMe:
I can see the results now on my live account and on the demo account, big difference and its only two days of tests, while some of the trades are closed on TP on the demo account, same trades are still pending on the live account .

So then when you setup the same EA on a live account I should decrease my TP by 1 or 2 pips as to not loose it like what's happening to you? Keeping a tighter SL and TP

BTW - What EA are you trying live?

 
matrixebiz:
So then when you setup the same EA on a live account I should decrease my TP by 1 or 2 pips as to not loose it like what's happening to you? Keeping a tighter SL and TP BTW - What EA are you trying live?

The problem is that : some orders are filled on the right price, and most of them have 1 pip difference on both buy/sell and take profit, so overall its two pips not just one.

belive me it makes a hell of a difference, it does not matter what EA I am using any EA will give you the same results, try the same setup on real and on demo with the same broker and you will end up with more moeny on demo account and less on the real, thats because the orders are bought or sold with a 1 pip difference, so the order are being filled on demo while they will not be filled on live, and that changes a lot when you test an EA.

This can not be good at all, cause if you want to test an EA to buy it, specialy grid, martingale (10point3) or scalping EAs, you will have totaly different results when you try it on a live account.

Don't get me wrong the EA will place the right price, on both demo and live the problem is with the Chart it self, although both charts may look the same on live and on demo, but live chart will not place your order till there is a buyer or seller that will result in a 1 pip difference (98%) on both BUY/SELL and TAKE PROFIT / STOPLOSS

 

Ok yesterday I changed the TP/SL and the BUY/SELL order on the live account trying to match the 1 pip difference on the demo account and I end up with totally different trades.

It seems that there is no way out of this.

 

Backtest = ? Demo =? Live ?

I am sorry to disappoint lots of you guys but now I am 100% sure that demo live testing is not exactly like a live account, and for sure backtest is not like live account.

So if you ever want to test your EA or test a strategy you better off opening a 50$ mini account and test your system with a live account only.

The difference is really big between demo and live account. And no way to make them equal

 

If it is always 1 pip worse then they gouging you a pip a trade. If it varies sometimes down a pip sometimes up a pip that would reflect real time variances of a time delay. Time to fill an order doesn't equal market always moves against you...

 
gpw797:
If it is always 1 pip worse then they gouging you a pip a trade. If it varies sometimes down a pip sometimes up a pip that would reflect real time variances of a time delay. Time to fill an order doesn't equal market always moves against you...

The 1 pip difference is on your order price and on your take profit price, try it and you will see a big difference between demo and real. in two days we are talking about 8 trades being filled with the demo and not being filled in live, 5 tardes were closed on demo with take profit while they have been closed later at totally different price on live account some with break even and others on loss.

The difference is big and I never expected to be that much. just try to open a 50 or 20$ account make the same setup on both live and demo account and try any EA, in three days you will find a big difference.

That but a big question mark on Demo tests?

with one pip less in live account in placing the orders and 1 pip less in taking the profit, I had better results but again it does not match the demo account.

Reason: