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A system is all good and well - but how long to SIM is the Q


jacquesnz

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Hi there,

 

I have had a look at all sorts of strategies and systems. There are some very very clever guys out there coding some amazing stuff.

 

My question is:

 

Can you rely on their system and go live within days or should one SIM for a week, month or a year?

 

So many people have said, trading is a career...it is not like you can do brain surgery once you have attended a 3 day course...you need to practice at it! NOT on MY brain thanks!

 

This is my worry....how long do I SIM?

 

 

Any advice?

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Re: A system is all good and well - but how long to SIM is the Q

 

Hi, if it's a new system to you then I would sim trade it until I could easily see and react to the setups. It takes a while to get used to a setup and screen-time will vary from person to person how ling it takes them to pick it up.

Treat sim as if it were real money, the best you can anyway. If you can sim trade your setup profitably for 3 weeks, 5 full days per week, then I think you'd be ready for real cash. The sim profitability is necessary in building your confidence in the system.

Good Luck.

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  • 4 weeks later...

Re: A system is all good and well - but how long to SIM is the Q

 

I would SIM trade the system/method until all of the following are true: Sim Account is increasing on a regular basis, Losses are Low and tolerable, Drawdown is acceptable, Net Per Trade after commission and slippage is at least $50 to $100, have enough Real Money in the account to cover regular Margin + 2 X the Maximum Drawdown.....This is the Margin amount I recommend per contract. I also agree, with jacquesnz, that a minimum is 3 weeks. You do not want to become over confident or under capitalized. Even after Losses....you want to have enough money to keep trading. Look real closely at the back testing.....Make sure profits are consistent and now 1 big win etc. If you are doing a system performance report....then subtract out the outliers(out of the ordinary wins, keep the losses in) ...this will help you decide it the system is likely to be profitable.

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