Pros of paper trading your algorithmic trading strategy are as follows:
- You don’t have to risk real money
- Test trading strategies without any stress or emotions
- Get to know the different features offered by the trading platform
- Paper trade different types of orders, instruments, markets etc.
- You can compare the backtesting performance of your strategy with the paper trading performance in your choice of programming language.
- You can further optimize your algorithmic trading strategy based on paper trading results
- Verify the robustness of the trading API solution which you’ll be using once you go live.