General

Paper Trading is the way to simulate what could happen when you have configured a pair for trading. Instead of risking valuable funds by going from Backtesting straight to Live Trading, Paper Trading is the way to make sure your strategies are performing in a way you hoped they would. The bot enforces the flow of Backtest > Paper Trading > Live Trading to help you have a better grasp of possibilities before you put your real funds in action.

As you can read more in the Setup section, when you first setup the bot, you are asked to enter some hypothetical values for what your Paper Trade quotes will be seeded with. We take the top 3-5 for each exchange (usually some variant of BTC, ETH, USDT/USD, etc) and allow you to specify your happy values in an ideal utopia. Again, we cover this in Setup and if you haven't read over that, please do.

Once you have the initial quote amounts set, you can run simulations against these to see what your strategy performance will yield. It's important to understand that Paper Trading is not 100% perfect or accurate. Exchanges are dynamic animals and Paper Trading does not try to simulate the complexities of an actual exchange. What it will do is run your strategies through the same core trading engine components while using the quote amounts you have set. All of the same front end and engine functionality that Live Trading has is also available to Paper Trading.

Quote Configuration

All Paper Trade quotes (or markets as some exchanges refer to them) are available for configuration in the Settings section. If you notice some of your quotes have a zero value, it is because they have not yet been set in the Settings > Paper Trading screen. You can read more about this functionality in the Settings documentation.

The Paper Trading Details Screen

This is where all the action happens, visually, and in real time. From here you can control all kinds of things ranging from whether or not the pair is automatically trading to changing the strategy settings. We can look at the controls broken down into rows with each row containing certain information and controls for changing how the pair is operated on by the engine.

Row one, pair info and high level controls.

In the first row we can see that there is the data consisting of the pair that's being traded. This includes the token icon, as well as both sides of the pair - the base and quote. The base is the currency on the left side of the slash character and the quote is the currency on the right. When you are trading, an entry usually means you have (in our case below) some USD and you want to enter into an order for LTC. Once you have a rise in the LTC price (viewed in the quote USD value) above what you bought in as, you can then exit (selling the LTC back to USD) for a profit. A base and quote together are called a trading pair. Below the pair the current LTC (base) price in USD (the quote), along with its value in $ USD. In the case, the quote and USD are the same, so both prices are the same. If the quote was BTC or some other token, then it would show the BTC price along with the USD price. The bot tries its best to offer accurate conversions in EUR as well and will use that in place of USD on the right hand price.

Next to the pair is the on/off toggle. This will turn a pair on or off for automated trading. You can keep this off at any time and still place manual buy / sell orders.

On the right side are the Help, Edit, and Close buttons. The Help button shows some quick contextual info about the strategy itself. It is meant as a lightweight what to get at some quick information and not meant to replace the Documentation section. The Close button will close out the details screen and show the trades list screen.

The Edit button.
You gain access to the Edit screen via the Edit button. This is where you can change all your strategy settings on the fly and have them applied to the pair. Once any of the settings have been changed, the pair is temporarily stopped, the strategy reloaded, and then restarted again to avoid any signals coming in and executing on the previous values.

Row two, the strategy information.

The next row contains all the current strategy information including the icon, name, and strategy specific configured properties. These will update if any changes to the pair has been doing via the Edit screen. While the screen above doesn't show it, when yuo are using a percentage buy amount, the buy amount will change based on the changes to the price, in real time. For fixed, this doesn't apply.

Row three, the Sentinel row.

Row three contains the Sentinel information as well as buttons for Market Buy/Sell. Here you can control specifically when you want to enter and exit a trade. The Market Buy button will also turn into a Market DCA Buy button if you have at least 1 entry already in play. See more below for DCA buying.

The three middle sections contain the entry price, the Sentinel status, and the current Profit & Loss.
For the entry price, this will always display what price you entered at. For DCA entries, it will be the average of all entry prices.
The Sentinel Exit will tell you where, based on your strategy settings, the price it requires to exit out. It will say Disabled... when the pair is not on since the engine is not watching for any signals.
The current Profit & Loss (P/L) is the gauge you can use at any time to see if you pair is currently in a profit or loss state. This displays any existing single Buy or DCA Buys so you can always see where you stand with your pair profit or loss, regardless if the pair is on or off. This allows you to run in full manual or automated mode.
The Market Sell button will allow you to exit out of a position by placing a Market Sell order. This button will be enabled whenever there is an Entry order, regardless if the pair is on or off. Again, this allows you to control the trading in either an automated or manual mode.

DCA

DCA (Dollar Cost Averaging) is a very popular feature and we have added support for this in the bot. Currently this support is on a manual only basis meaning that you will need to manually invoke a Market DCA Buy order for this feature to kick in. Currently the DCA process is manual and later will be automated and configurable pair and/or strategy configuration.

The premise of DCA is to allow you to buy at lower entry points to average your costs down. For instance, if you have an initial entry of 50 and the price drops down to 25, you have just lost 50% of your position. Without DCA you can either do two things: 1) ride it out and hope that the price will at least get back to 50 so you can zero out. 2) you can exist out there and then to take the loss, possibly preventing a deeper loss if the price falls lower.

With DCA you have another option which is to buy more - if you have the funds available, of course. If you can DCA, then you will double your quantity of your position and average out (and reduce) the price required for a profitable exit. You can do this as many times as you want, again, providing the funds are available. So, in theory, you could keep DCA'ing down from an entry price of 50 to an exit price of 25 with profitability. (You'll have to do the math on that.)

DCA is not perfect, however, and you will have to use your best judgement as to when it can be best applied.

Market Buy DCA Button

Market Buys are available at any time of the Paper Trading process. You can initiate a Market Buy manually whether or not a pair is turned on for automated trading. Once this is done you can either exit out of the trade via a Market Sell or you can by more of your position via DCA.

In order for DCA to be available, you first must have an Entry recorded. Only when the current candle close price is less than the Entry price will a new DCA Buy be available. Each DCA Buy will then set the floor for additional DCA buys. In the example below, you can see that there are 3 buys, each one lower than the previous. Currently, there is no way to create a new DCA Buy greater than the last DCA Buy. This is buy design and will help enforce an optimal average price.

DCA Trades List

DCA now changes the Trades List section and provides the following information:

These values are also available for completed Trades that used DCA, as shown in the image below.

In the above image, we can see that the Trade row, 1, is tagged with DCA and that the rest of the row date, price, and quantity fields have white text. Below that are the two DCA orders, in blue text, that denote the two DCA orders. The Trade row uses the final price averages for entry and the full summed quantities for the exit.