So you decided to become a crypto trader but the trading platforms’ UIX is not so clear and you are worried about all these indicators? Or are you already a trader confused by the market obstacles and want to prove your trading theory? There is a practice to commit a rehearsal of deals that helps to simulate the given strategy in the current situation or to program any other market conditions. So no matter if you are a beginner or an advanced trader, the markets sometimes are crazy, and testing the different levels of risk is vital for investment.
The concept of using retrospective market data to test whether the strategy will work in the current market using similar conditions is called reverse verification.
Paper trading or forward performance testing occurs when deals are tested considering a live market.
How to try paper trading
This process came from the Forex markets and the traditional economy. People used to manage this kind of trading literally with a pen and paper or spreadsheets in EXCEL a little bit later. This was a sufficient set of tools for different indicators in the market. But the crypto market is a way too complex structure and no columns are enough to list all the possible risks and causes that affect the market of digital assets.
One of the most popular and easiest ways to start paper trading is to use an algorithm that identifies attractive assets through a graph on a website or through oracles, records tickers, and chooses a time to place a hypothetical purchase or sale order. The user can create a transaction scheme, taking into account the different prices, and can make a test of the good time for stopping and the duration of holding the position.
The easiest way for anyone is to use specified services that allow simulating deals in вesigning the most realistic market environment. There are thousands of platforms but we may stop at descent one which is the Binance official broker and copy trading platform Jet Bot. This platform allows you to create and test your custom bot and to copy deals of top traders which make up to 600% annually. Just in a few minutes you can have your account set up and start exploring trading with the top team.