I created an IB account and for the last six weeks I've been doing paper trading. My account is steadily growing and apparently I am so successful I could quit my job. I usually make up to ten trades per day, each trade is about $4000 - $5000. In one month I made about $10000, if I am to believe IB reports.
Just yesterday I made nine trades, in total over $2800 in unrealized profit. I usually place some trades at a good price and some of them take place. What is concerning to me is that some stocks never reach my price and yet the transaction takes place. I know there are some transactions happening after the market closes, but if the day price ranges between $4.00 to $5.00, why would anybody be willing to sell at $3.00.
For example, it appears I made $1176 on ADMP alone. Apparently I bought it at $2.681 and it closed the day at $3.10. But the low of the day was $3.01. I have no idea if during the day or after hours the price reached $2.681.
The trade statement show that I made two purchases for ADMP, on 07/07/2016. I purchased at $2.55 at 20:00:18 and also at $2.91 at 20:00:51. Would I have been able to make the purchase at these prices in real life?
I got in contact with IB support and I told them I am concerned about the statements of my paper trading account. They insured me the statements are very accurate. However, after I started asking questions about the value shown in Mkt Val, they got tired of me and they told me this is just a paper account and the Mkt Val shows combined results between my account and MGKS Asset Management account. Which I don't believe, because Mkt Val for MGKS is separately indicated ($621284). At the time I contacted them, the Mkt Val just jumped from about $10000 to $15000, while the market was closed.
So, perhaps the statements are accurate to cents and inaccurate to thousands?
The contact from IB also told me that once I have my real account, everything will be accurate. I explained to him that based on my performance on the paper trading account I will decide whether I will fund my real account or not. And if I can not trust my paper trading performance, I will not put any real money in the market. But that was not his problem...
So, did anybody else discovered that the exercise of paper trading with IB is useless and misleading? Or maybe I am wrong and in this case, I am so right!