Hi All, my purpose of this post is to discuss the differences you will find in testing a forex strategy. It is important to demo test a strategy before going live with it for sure. But it is even more important to Live test the strategy as results will differ. The reason for this is demo testing is done on demo servers provided by your broker of choice. These servers are generally not as stable and reliable as the live servers for obvious reasons. You will generally notice demo results will be better than live results because the price feeds are different and there is little to no slippage.
If all this is too technical for you don't worry. My suggestion is to open a small micro account with a few hundred dollars with your broker of choice and live test a strategy on a very low risk size. If the strategy has a money management feature set it to the lowest amount. If you are not sure how to do this check with the vendor of the strategy by email and ask them how to do this.
In conclusion let's live test our forex strategies on the lowest risk setting for a couple months to really get a sense of how well it will perform in a live trading environment. Best of luck to all.
