Paper trading sits between backtesting and going live. The strategy receives real, live market data and acts in real time, but orders are filled by a simulated broker, so no capital is at risk. It tests the things a backtest can't: live data feeds, timing, your own discipline, and whether the strategy behaves as expected when the clock is actually running.
It is the recommended dress rehearsal before any live deployment. A strategy that looks great in backtest but falls apart in paper trading was relying on something the historical replay didn't capture.
Exemple
After a strong walk-forward, a strategy is paper-traded for a month on live BTC data before any thought of real execution.
Comment Noon Barbari utilise Paper Trading
Chaque concept ici est implémenté dans la plateforme. Ouvre la documentation ou l'outil concerné pour le voir en action.
Paper trade in noonbarbari →Termes liés
- Backtesting
Backtest
Simulating a trading rule on historical data to estimate how it would have performed.
- Backtesting
Walk-forward optimization
Optimize on a rolling in-sample window, validate on the next out-of-sample slice.
- Backtesting
Slippage
Difference between the price a strategy assumed and the price it actually got.
- Backtesting
Overfitting
Fitting a strategy so closely to past data that it captures noise, not signal.