Paper trading, as the name implies, means you write down your trades on a piece of paper and judge how much you could have gained or lost if you bought and sold at a particular price. Nowadays, paper trading has evolved as an essential feature with numerous institutions giving an experience that is as close to live trading as possible. However, paper trading is not to be taken lightly. This webinar will introduce you to this major bridge between backtesting and live trading, i.e. paper trading. It will focus more on the trading experience after you have created your trading strategy. The webinar will also help you understand why you should paper trade before taking the plunge and how to look out for some inherent pitfalls of paper trading. COMPLETE WEBINAR RECORDING: https://youtu.be/URRA8jRLT0M Session outline: - Introduction to paper trading - Building a trading strategy with python - Difference between paper trading and live trading - Why should you practice paper trading? - Monitoring the trades - Risk analysis - How paper trading eases your life - FAQs regarding paper trading - Interactive Q&A About the Speaker: Rekhit Pachanekar (Quant Analyst, QuantInsti) Rekhit Pachanekar completed his PGDM from IIM Indore and is a Computer Engineer. He researches equities and fixed-income securities as a part of the content team at Quantra. Away from work, he likes to read up on the outliers in the market and follows Tesla Inc. with keen interest. Don't forget to 'Like' and 'Share' this presentation! --------------------------------------------------------------------- IMPORTANT FREE Resources:  Complete Tutorials - https://blog.quantinsti.com/tag/python-for-trading/  Book on Python Basics - https://www.quantinsti.com/python-basics-handbook ️ Courses - https://quantra.quantinsti.com/courses?category_id=10  Blog - Intro to Python - https://blog.quantinsti.com/python-trading/ --------------------------------------------------------------------- Important Links: Link to our Blog: https://blog.quantinsti.com/ Like us on Facebook @ https://www.facebook.com/quantinsti/ Follow us on Twitter @ https://twitter.com/QuantInsti Follow us on LinkedIn @ https://www.linkedin.com/school/quantinsti/ Follow us on Instagram @ https://www.instagram.com/quantinstian/ E-mail us @ contact@quantinsti.com ---------------------------------------------------------------------

1. How Paper
Trading Can Make
You A Better
Trader
Rekhit Pachanekar
QuantInsti

2. What’s in Store Today?
● What is paper trading?
● The hidden stage
● Why do traders paper trade?
● Paper trading platforms
○ Trader workstation
○ Blueshift
● Backtesting and taking the strategy to the markets
● Do’s and don’ts while paper trading
● Q&A session

3. What is Paper Trading?
Tesla
Apple
GM
J P Morgan
Close 2nd
678.76
137.98
59.15
155.95
Close 9th
656.95
145.11
58.76
155.68

5. NOT EXACTLY!

6. Backtesting to Live Trading - The Hidden Stage
Backtesting Live Trading
Experiment with strategies Only when you are confident
No money on the line Real money is invested
Paper Trading - A small step between theory and practice

7. Why Do Traders
Paper Trade?

8. Why Do Traders Paper Trade?
● Confidence building
● Check deployment issues
● Does the strategy perform as expected
○ Same time period
● Impact of other costs
● Understand yourself

9. Why Do Traders Paper Trade?

10. Why Do Traders Paper Trade?
Freefall from $80 to $56
Close to your entry in 2019
Stayed or cut your losses?

11. Why Do Traders Paper Trade?
Investing in Apple in 2019 is
a no-brainer today in 2021.
But in April 2020, you
wouldn’t be so confident.

12. Paper
Trading

13. Paper Trading Platforms
There are many but we will look at two of them
● IB Trader Workstation
● Blueshift

14. Trader WorkStation
There are many but we will look at two of them
● IB Trader Workstation
● Blueshift

15. Blueshift - MACD Swing Strategy

16. Blueshift - MACD Swing Strategy
Backtest

17. Blueshift - Simple RSI based Strategy
Backtest

18. Blueshift - Simple RSI based Strategy
Go Live

19. Blueshift - Simple RSI based Strategy

20. Do’s and Don’ts

21. Do’s and Don’ts
• Think this is real
• Capital should be realistic
• Portfolio should be realistic
• Market impact may vary
• Don’t change strategy midway
• Check metrics regularly
• Know when to go live - time, number of trades

22. Complete
Webinar Recording