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The 5-Phase Demo Test Protocol
Click each phase to see what to measure, what to record, and the go/no-go criteria before advancing.
Phase 1: Setup & Calibration — Week 1–2
What to Do
Verify the EA loads correctly on your demo chart, confirm the correct lot size is being used, check that trades are actually opening and closing as expected, and verify that stop losses and take profits are being placed.
What to Record
Log: EA name, version, demo broker, account number, starting balance, lot size, and any settings you changed from defaults. Screenshot the first live trade.
Common Mistakes
Running at full lot size from day one (use 0.01 lots regardless of account size during setup). Not checking that the EA is on the correct XAUUSD symbol name for your broker.
Go / No-Go Criteria
Go: EA is opening trades, SL/TP is being placed, lot sizes match expectations. No-go: EA is silent after 48 hours during normal market hours — investigate before proceeding.
Quick Answer
Demo test for a minimum of 6–12 weeks, capturing at least one news event and one losing streak. Demo reveals strategy logic and average performance; it hides the psychological pressure of real money. The transition to live trading should always start at micro lots regardless of how well the demo performed.
Check every criterion your demo test has met. When you have ticked all seven, your results are reliable enough to consider going live.
Test longer before risking real money
Demo testing has a well-known limitation: it removes the most powerful variable in trading — your own psychology. When there is no real money at stake, you will observe the EA dispassionately, letting it run through drawdowns without interference. In live trading, even small losses create emotional pressure to intervene.
This limitation does not make demo testing optional — it makes it the necessary first step before the second, harder phase (live testing at micro lots). Demo testing validates that the EA actually works: that it opens trades in the right conditions, that its stop losses and take profits function correctly, that its backtest claims are at least partially reproducible in live market conditions.
The metrics you are validating in demo: win rate (within 10–15% of backtest), average slippage (under 3 pips), maximum losing streak (within documented historical range), and EA behaviour during news events. These are mechanical facts that demo testing can reliably reveal.
The difference between a useful demo test and a wasted one is the journal. Without systematic records, you have no baseline to compare against live results, and no way to identify problems before risking real capital.
Per-trade log
Weekly summary
A simple spreadsheet works perfectly — there is no need for specialist software. The discipline of maintaining the journal is itself useful preparation for the more critical monitoring you will need to do in live trading.
Strategy logic
Demo: Fully visible and testable
Live: No change — same logic executes
Fill prices
Demo: Typically slightly better (best bid/ask)
Live: Real market execution — adds 1–3 pips average slippage on XAUUSD
Spreads
Demo: Usually representative but may be slightly tighter
Live: Variable — spikes to 30–80 pips during news, Asian opens
EA settings
Demo: Configured by you
Live: Should be identical — transfer settings exactly
Your psychology
Demo: Detached — no real pressure
Live: Significant — even small losses create emotional responses
News filter behaviour
Demo: Functions as designed
Live: May behave differently if news feed timing differs from live feed
The transition from demo to live is a separate phase that most traders rush. The correct approach is a three-stage scaling process: micro lots, then 50% of target, then full target. Each stage should be treated as its own validation phase.
Stage 1
0.01 lots
Month 1
Validate live fills match demo expectations. Confirm EA behaviour is identical. Build psychological comfort with real losses.
Stage 2
50% target
Month 2–3
Increase to half your target lot size. Monitor live vs demo discrepancies. If within 15% of demo metrics, proceed.
Stage 3
Full target
Month 4+
Only after 3 months of live results that match demo expectations should you reach full target lot size.
Goldie Razor V2.8.4 has a clear, observable breakout logic that is easy to validate during the demo phase — you can see on the M15 chart exactly when and why it entered. Running it on demo for 4–6 weeks gives you direct visual confirmation of the range-breakout logic in action before any real capital is at risk.
What Drawdown Should I Expect From Gold EAs?
Know expected drawdown ranges before you start demo testing.
How to Backtest XAUUSD EAs Without Getting Fooled
Backtesting comes before demo testing — start here.
Should Your Gold EA Use a Stop Loss?
Verify stop loss behaviour is functioning correctly during demo.
What Should I Do After My EA Hits Drawdown?
Action plan for when demo shows unexpected drawdown depth.
How Much Capital Do You Need for a Profitable Gold EA?
Prepare your live account sizing while still on demo.
Goldie Razor V2.8.4
M15 breakout + H4 EMA filter — built for XAUUSD on MT5