joe,
Yes, I still am paper trading. One of my main concerns paper trading was making it as realistic as possible so that when I make the jump from paper trading to real trading I leave as few surprises as possible. The general stressor of going from phony dollars to real dollars will be stressful enough. To add many other changes I think could be a problem. For example two other changes that might take place are the following: Right now I am trading via the internet, using the mini for pricing. It is very likely that I will use phone based broker and get the real time CME Spoo quotes. If I do that, that is two changes and it is likely it will take some time to adjust. I am tempted to start out using an internet based service and not changing to real time Spoo quotes, although the Spoo quotes will probably be a necessity. However, I will paper trade using real Spoo quotes for a week or more to make sure that doesn't affect my entries and exits. Some may think this is overdoing it, but I do not. Any change in the process beyond just moving to real dollars makes the experience different.
So, in order to simulate real time trading I decided to try auditrack which is a paper trading simulation over the net. They boast of as close to real time fills as possible without actually placing the order. I talked to one of the people down there and I seem to recall that they strive for a .2 variance from a real fill. Not quite sure I recall that correctly, but the point is they attempt to make the experience identical to real time trading. They also have the option to phone in orders, even though I am using the internet option.
The problem I had with buying the ask and selling the bid is the lag time between seeing the entry, calling the broker, placing the order, relaying the order to the floor trader, filling the order and then back to let me know the fill. This can take a couple of minutes and by that time, at least as of late, the price could have changed a couple of points. This has been clearly evidenced by my getting fills that are as many as 3 points away from where I "entered" the market. The other thing it does is commit you to a trade. I noticed that strictly paper trading you can "fool" yourself thinking well, that didn't work and I wouldn't have really done that anyway and then you end up erasing that order. HA! Not in real life you don't! It makes it more realistic and therefore a "winning" system paper trading this way...hopefully will be a winning combination in real life.
You can review auditrack at:
auditrack.com
No, I have no affiliation with them, but have been very happy with their service. I "think" I am getting as close to reality with them as possible. If you open an account via the CME site the fees are reduced for the first couple of months.
-Scott |
