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Why is the performance of EA different in the micro account?

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Omusubi-X
84
Omusubi-X 2015.06.24 14:17 

Hello.

The backing test of EA of the code base and the market on this site is done.
Only 1/10 increases in EUR/USDmicro though I do the backing test with EUR/USD and EUR/USDmicro of XM.
Why ?
Moreover, there is EA of which it makes an error only by increasing the lot a little, too.
Why ?

Osama Shaban
1464
Osama Shaban 2015.06.24 17:52  

Let me tell you the fact that many traders neglect, or even don't know about ...

Most of demo accounts are standard one, i.e, Lot Size for 1 lot is $100,000 ...

In the live Micro accounts, like XM,  Lot Size for 1 lot is $1,000 ...

If you want to try an EA on back-test, but you want results of the same % ...

Then you need to do the test on different balance (supposing you have the same

leverage and lot size) ...

Balance for test on Demo STD Acc. = ($100,000/$1,000) * real account balance 

Which will give a result of 100 times for demo starting balance and 10 times in mini case.

An other way, if you have enough equity in your account, you can multiply lot szie by 100 :)

So, if in the demo std account the used lot size is 0.01, then you can use 1 lot on micro account

if this is not a problem for your account.

I believe many and many traders and testers fall in the ignorance of lack of knowledge about

the Account Lot Size concept and many of their tests or even live trading leads to big loss. 

Osama Shaban
1464
Osama Shaban 2015.06.24 18:03  

By the way, I forgot to mention that when you scale up your demo account balance for test, 

always treat the results of Profit, Loss, Draw-down as a percentage multiplied by the real

balance of the micro account to get the real numbers in $$$ if that was on forward test on

your actual live account.

For example, Your Live account is $100, then Demo standard account must be $100*100 = $10k

During the test, you fount that max DD in $$$ was -$2400, Final Profit is $3,500

This will give you the following summary ...

Demo ...

Max DD is 2400/10k = 24%

Profit is 3,500/10k = 35%

 

Micro account ...

Max DD should be 24%*1000 = $240

Max Profit should be 35%*1000 = $350

==========================

 

If you didn't multiply the starting balance for the demo account by 100 (ratio of lot size on demo to micro)

you will never get such relevant result. 

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