I am interested in futures trading. I have been sim trading for about a year now trying to find something that works for me. I started using Think or swim and attempting to sim trade crude oil. I had no clue and tried a whole lot of technical indicators. Some of them actually worked occasionally. I figured out that crude oil wasn't for me and technical indicators are not "all that".
I started noticing people talking about orderflow and volume profile. I decided to learn about that and purchased a copy of Ninja, Jigsaw tools and the Rancho Dinero program. (I am not affiliated with anything mentioned. I didn't use the Gomi tools because of my intellectual limitations with software. Rancho seemed like it would be easier for me to implement)
I have been sim trading the 6E euro futures. I have tried the ES and bonds but they are too slow for me. I primarily use the Volume ladder, Volume profile and the reconstructed tape from Jigsaw as well as the DOM. I do have one oscillator on a second chart as a "crutch". On that secondary chart I am using a three tick Renko chart with the VWAP channel and a volume profile.
What seems to work for me is seeing large volume at the top or bottom of the volume ladder with no follow through. I get in and enjoy the stops being hit in the opposite direction.
I have spent quite a bit of time with the volume impression chart (Footprint, ladder or whatever you want to call it) and it is starting to tell me a story.
I have started becoming consistent in sim trading. I have an account set up and funded. My questions are this:
1) How many months of consistent sim trading before going live?
2) What can I expect in the real world? I know I am getting unrealistic fills in the sim trading. Should I expect half of what the sim account is producing? 75%?
You are at a good start here.
First you need a trading plan and second a good money management plan (stops et al).
Of course SIM is not to compare with real money. (nerves, normal trader's faults etc. etc.)
So do not expect ANYTHING of the results you made in SIM.
But start slowly with a low percentage of money in the risk and see what happens.
The following user says Thank You to GFIs1 for this post:
set your sim balance to the same balance of your live account, if you plan to trade 1 contract in live account then trade 1 contract in sim account, keep the trading plan identical, keep the physical location and environment identical. Remember to add comm fee you have to pay and to make it even harder than live uncheck enforce imm fill. Given all those conditions above then if you have 3 positive months then you are ready the rest is just your own nerves never the market.
The following user says Thank You to cory for this post:
Thank you for the advice. I know trading live is going to be mentally a lot different than fake money. I think my personality is going to be a benefit since I am not overly emotional.
Sim trading HAS TO BE a lot easier than live trading because the results I am getting are just not in line with some of the journals I have reviewed here on Big Mikes. Same thing when I look at the people that passed Top Step traders combine. I know I am not that great at it yet.
I am glad you suggested the tweeks to my setting Cory. Makes sense to set my sim account balance to my live balance. I had already unchecked the immediate fill box. I do plan on only one contract and have been trading one in sim.
My trades generally only last a few minutes. I am using a six tick stop with a 12 tick target although if the trade looks like it might have more upside/downside I will adjust the target. I move my stop up/down (depending if I am long or short) as the trade develops but never change the initial 6 tick potential loss.
The following user says Thank You to Wartrace for this post:
I read so much negative opinions that I can not even begin to try sim trading. I am so turned off to it. I wish I could use it to help me trade. but when I go to make a trade I might enter and then later I get bored and forget about it and get out of the trade. My mind is not working too well.
I had the same issues with sim. Until I decided to try the free trial at TST. I nurture my trades as if they are live (I am not trading my live acct since the day I started the trial). It must be because even in the trial I have set rules and my head about to be chopped if I make mistakes, something I never had before - both in sim & live fx. Perhaps you could try it and then later do sim with combine rules on free demos and see if you can handle it. For me it was a game changer regarding sim trading. Hopefully this attitude will follow me back to my live trading.