What is Paper Trading
Paper Trading, also called as Simulated Trading, is a process to test trading strategies without risking money in the market. It is a very important process to learn which order type suits your strategy; and which execution logic provides minimum slippage in trading. Further, paper trading helps to validate your strategies before deployment in live market.
Paper Trading App for Free
The Paper Trading App is an extremely light weight application which does not require any login, and does not have any expiry date. Also, the free trial version of Amibroker is sufficient to use the paper trading app. It is a very useful app to gain a first hand experience about, what is Algo Trading, and, how it works in the real world. Paper Trading app is available free now only with APSAT course.
Why 99% of Trading Strategies lose money
A lot of you may have already experienced this. If you have not lost money by using AFLs from internet, consider yourself luckly!!!
Unfortunately, most AFLs available free on internet, are nothing more than junk. They either have repainting signals, or use future looking indicators, to plot nice-looking signals on the chart. Even the backtests reports are manipulated by the AFL, so there is no easy way to verify its profitability. You can use our Paper Trading App to verify any AFL stratgey.
Day Trading Simulator
Should you trade using Limit Orders or Market Orders? Should you place buy limit order at Ask or Bid? What are the chances of getting filled if limit order is placed at Ask price? To answer these questions, there is no shortcut way, but to use the Paper Trading App for your Amibroker AFL. Watch the video below to see how your limit order may not get filled even if it is placed on Ask price.
Trading Simulator vs Actual Trading
The AlgoJi Trading Simulator is as good as actual trading, unless you are trading in large quantities.
For example, say you want to sell 20 lots of Nifty immediately. Since Nifty current lot size is 75, it amounts to selling 1500 Nifty.
Say you decide to place a Market Order. We can Place a Sell Market Order for 1500 Nifty.
In this case, 225 Nifty could be sold at 8020.10, and rest is sold at 8019.90. The average price for selling Nifty comes out to be 8019.93.
However, there could also be hidden quantity of 1275 at 8020.10. Exchanges allow to disclose only a partial quantity in your bid. So, in this case, you will be able to sell the entire 1500 quantity at 8020.10.
This undisclosed quantity cannot be predicted by simulated trading. Whether you can sell at 8019.93 or 8020.10, you can never know unless you place an actual order. However, if you are not trading in larger quantities, or not trading illiquid stocks, there is no significant difference between actual trading and paper trading.
Since actual bid size cannot be predicted, AlgoJi paper trading app ignores them. We use the same price fields which are used for actual trading in exchange- the Last Traded Price, Bid Price, Ask Price, Prices from Candle Open, High, Low, or Close.
Stock Trading Simulator
You can also use this Paper Trading App on multiple watchlist of stocks with multiple strategies. All that you need is to add the paper trading afl code at the bottom of your strategy AFL. The app makes a log of Orders sent and filled in the Amibroker log window. Also a record of all executed trades is maintained in “Paper Trades.txt” file in C: drive.
Free Paper Trading Account
The AlgoJi Paper Trading App makes the requirement of trading account redundant. You do not need trading account with any broker, whether live or demo, to use the Paper Trading App. The Paper Trading App can simulate orders on both live data and historical data.
Paper Trading app is available free now only with APSAT course.