Paper Trading v/s Back Testing

R

raghav.sriniwasan

New Member
#3
#3
Back-testing reveals a set of data which can be used in a certain manner,
whereas Paper Trading (or demo trading) enables one to learn about the real-time aspect, which is very important.

(Disc: I have not watched the video yet)
 
A

Algo

Active Member
#4
#4
raghav.sriniwasan said:
Back-testing reveals a set of data which can be used in a certain manner,
whereas Paper Trading (or demo trading) enables one to learn about the real-time aspect, which is very important.

(Disc: I have not watched the video yet)
Click to expand...
I believe Paper Trading is essential specially for strategists. By back testing we get a broad overview of whetehr there is somthing fundamentally wrong with the strategy or not. 10% work is done by backtesting, 10 % by Paper Trading, 80%..well by luck!!! But if you ignore the 20% then best of luck to you!!!
 
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