Creators on Mudrex can create Algos on the basis of some underlying hypothesis. Once created there needs to be a way to test and validate the hypothesis out.

Backtesting assesses the viability of a trading strategy by analysing how it would play out with historical data.

However, testing on historical data is not enough because the user might have overfitted or underfitted their trading strategy. As a result, before allocating capital to a strategy you might want to test it on live market data to get better results.

When a strategy is running in paper trading mode, it tries to simulate trading just like it would do in live trading except that no orders actually get placed. The strategy continues to compute results and shows the user performance on live data under the impression that all trades will get executed and thus giving users the ability to measure the performance of the strategy without making any investment.

Once a user has tested their strategy and is relatively confident of its working, the user can deploy the strategy on paper trade mode before allocating capital to it

Running a paper trade is super easy

1. Click on Paper Trade on the bottom tab

Paper_Trades.png

 

2. You can then select the

  • Exchange
  • Market
  • Assets
  • Fees
  • Slippage
  • Candle period
  • Time period
  • Trading period

to run the Paper trade. These parameters differ from market to market and on your strategy.

Selection.png

 

3. Run The Paper Trade

On running the paper trade it will directly be visible and you will be able to see real-time results. Clicking on the same will give you a summary of the running paper trade

backtestpaper.png

 

4. View Details

To view details of a paper trade click on the 'view details' icon. To stop the paper trade you can press the stop icon.

Once you are satisfied with the results of the strategy, can allocate some capital and put the strategy on live trading!

 

If you have any queries, feel free to reach us at help@mudrex.com

Test your trading strategies before you start trading. Join Mudrex today!

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