How long testing a strategy before going to live account?

What is your best practice regarding testing a new Strategy with a test trading account before moving the strategy to a live trading account?

At this moment I have a few strategies running with a test trading account, one strategy is already producing profit but I’m not sure on how long to continuing testing before going live.

If you prepare robust enough portfolio then you don’t have to care that much about individual strategies. If it starts behaving oddly then it’s time to put it to ‘standby’ or replace by some better system.

 

AN extract taken from An Introduction to Automated Trading

By Daniel Fernández Pinto

 

Thanks notch, I downloaded the complete ebook. Good read! I’m already trading for more than 15 years now (stocks, options) but forex and automated trading is new for me.

If you prepare robust enough portfolio then you don’t have to care that much about individual strategies. If it starts behaving oddly then it’s time to put it to ‘standby’ or replace by some better system.

Great tip, thanks.

Over the years I’ve read about many benefits as well as pitfalls, of using a Simulated Stock Trading Account. Of course a lot of this depends on whether or not you will be relying solely on this experience AND potential confidence before entering the markets for real. Personally, I feel the benefits outweigh the pitfalls, at least for me they have. 

 

I agree, for me auto-trading is new and trading a Demo account gives me ideed more confidence before using a live account.