Why does a Robot Trading on a Demo Account Profit, but Loss on a Real Account?

monarchcb.com - Many people are attracted to using human machines to trade forex, gold, or other goods, because of the benefits offered. Just install, wait and earn easily. That's why many people buy human trading machines, such as Expert Advisors (EAs) for use in MetaTrader. They then tried it on a demo account and in fact the results were very prestigious. The trading machine man can share the profits. With full of religion they try to trade the human machine on a real account. The result? In fact, there are injuries and moreover there are those whose all capital has been eroded. Why do humans trade on demo accounts profit, but on real accounts get injured?

Many people who try to do EA on demo and real accounts are worried, because the results are different, even at the same agent. The one on the demo account is profitable, on the contrary the duration of trying on the real account is actually injured. Some people think they are being cheated by agents.

In fact they are not cheated by agents. Agents don't cheat either, results on demo and real accounts may vary. Comparison between demo and real accounts can vary depending on the agent, but the truth is that demo and real accounts are indeed very different.

The main difference between demo and real accounts is liquidity.

On a similar demo account there is absolutely no liquidity, meaning we only trade ourselves. There are no trading rivals. In the real market, there are always 2 parties, namely traders and consumers. If someone puts a buy position on EURUSD for 10 lots, so that the deal must be someone who puts a sell position on EURUSD for 10 lots too. Both parties are like that which causes the way of consent and application. On the demo account, all instructions can be followed. No need for 2 parties. That's how it's called a demo account, meaning it's in the form of imitation.

In the real market, to overcome the excitement of requests and offers, agents can do various things, such as slippage, requotes, or agents placing their own instructions against traders. Because like that demo and real accounts are very different.

Not only that there are many comparisons between demo and real accounts:

Tick prices may vary between demo and real accounts
The highest and lowest prices may differ between demo and real accounts
The dexterity of server reactions between demo and real accounts is different. Demo accounts are generally easy, while real accounts are generally slower, because of different loads (more customers). Therefore, don't be confused if sometimes the instructions on the real account are not executed or have already been executed
Spreads on demo accounts are generally fixed. Spreads on real accounts can vary depending on whether the market is booming or not.
Information on demo and real accounts is different. Generally, the information on the demo account is more "smooth"

Maybe you are not sure the information on the demo account and real account can be different. If you are not sure, just compare the information in the tick or M1 timeframe at the same agent. That's why, even though human trading machines can profit on a demo account, they can even get injured if they are done on a real account.

Then how to respond to this comparison between demo and real accounts? Next are 2 suggestions for those of you who use EA:

EAs that are very involved in comparisons between demo and real accounts are mainly EAs that use short time frames, such as ticks, M1, M5 or even M15. That's why it's recommended to be careful when using an EA with a short time frame
It is also recommended to try the EA on a real account with a minimum amount of money first, before increasing the budget again.

Hopefully this post is useful