Last updated: August 2026 · 5 min read
TL;DR
Paper trading runs a trading strategy on real market data with simulated money — you watch the agent scan markets, open and close positions, and enforce stop-losses, all with zero real funds at risk. It's the safest way to verify a strategy before going live. Look for paper mode that uses the exact same agent and risk engine as live trading, so what you see is what you'd actually get.
Paper trading is a simulation: your account gets a virtual balance, trades execute at real market prices, and fees and slippage are modeled — but no real money moves. It's the standard way professional traders validate a system before risking capital.
After at least a week or two, if you understand the strategy, accept its drawdowns, and are comfortable losing the entire budget you plan to allocate — then consider live mode with a small amount.
Paper trading simulates trades using real market data and a virtual balance. You test strategies, learn execution mechanics, and measure performance — without risking real money.
The prices, signals, and fills model are identical; only the money is simulated. The main difference in live mode is real slippage, funding costs, and psychological pressure.
At least one to two weeks, ideally covering both calm and volatile market conditions. Look at drawdowns, win rate, and how the strategy behaves in stress — not just total return.
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