Micro lots and lot steps, how small sizes helped me test live with real fills

[Fairman]

Micro lots and lot steps, how small sizes helped me test live with real fills

if you want to test a strategy with real execution but don't want real risk, the minimum lot size and the lot step on the account matter. I found out how much while setting up a test account.

Some accounts allow very small positions, like a hundredth of a standard lot, and the step between sizes is the same. Others have bigger minimums. If the minimum is large relative to the balance, you can't size trades properly with a small stop. You'd be forced to take more risk than planned, and the test is useless.

I use a small live account for new setups, with positions so small that a loss doesn't matter. What I'm looking at is the fills and the spreads, not the profit. After a few weeks of the small account I compare it to the demo results and see how close they are.

Check also the maximum number of open positions and the minimum distance for stops, which differ between brokers and instruments. The stop level can limit how tight your stop can be, which matters for scalping.

[Fairman]

This is exactly how I test new setups now. The point you made about the minimum lot is important. On a tiny account with a large minimum, a tight stop and a wide stop end up with the same size, so the risk changes from trade to trade and the test is meaningless. Checking the lot step and minimum before funding the account saves a lot of frustration. Some brokers also have different minimums for different symbols, especially metals and indices, so check each one.

[Fairman]

I like that the focus is on fills and spreads, not profit. The money result on a tiny test account tells you nothing over a few weeks, but the execution data is real. I keep a simple log comparing the price I wanted with the price I got, and the spread at entry. After a month, I compare it with the demo. If the gap is big, the demo results are not something I can trust for that setup. It is slow and a bit boring, but it is the only honest way I know to see how a setup survives real execution.