Deploy a Simulated Strategy
Learn how to deploy a backtest-validated strategy in simulation mode and evaluate its real-time behavior without using real funds.
I. Overview
A simulated deployment runs a backtest-validated strategy in simulation mode, using virtual capital while following live market prices to test stability and reliability in a real-time environment. It is a critical validation step between backtesting and live trading.
Strategy validation process
1
Backtest validation
Historical data
2
Simulated deployment
Current stage
3
Live deployment
Real funds
Core advantage: Simulation uses virtual capital to validate strategy behavior against live prices with no capital risk. It is an essential step before going live. Run a simulation for at least one to two weeks before considering live deployment.
II. Prerequisites
A simulated deployment does not require an exchange API, but it does require an available server and the following preparation:
1
Complete backtest validation
Make sure the strategy has passed backtesting and the results meet expectations. The backtest period should cover different market conditions—rising, falling, and range-bound—to validate behavior across environments.
2
Review the workflow configuration
Confirm the parameters of every node: data source, data processing, strategy type, position management, and risk control.
3
Prepare an available server
Simulation mode also requires a server at launch. Purchase or renew one from the Servers page. A simulation may use a server also used for live tasks, but one server can run only one task at a time.
4
Understand simulation behavior
Simulation uses live market data but virtual capital. It uses an idealized fill model without real liquidity constraints or market impact, so actual slippage and fills may differ in live trading.
III. Configuration Steps
After completing a backtest, switch the runtime mode in the trading-engine node to deploy a simulation.
3.1 Open the Workflow Editor
1
Open My Strategies
Click My Strategies in the left navigation and find the strategy to deploy.
2
Open the strategy editor
Click the strategy card to open the workflow editor, where the complete node graph is displayed.
3.2 Switch the Runtime Mode
1
Select the trading-engine node
In the workflow editor, select the rightmost Trading Engine node to open its configuration panel.
2
Switch the runtime mode to Simulation
Under Runtime Mode at the top of the panel, switch from Backtest to Simulation. The panel then displays simulation parameters.
3.3 Configure Simulation Parameters
1
Select an exchange
Select the exchange to simulate, Binance or OKX. You can add multiple exchanges.
2
Select a market type
Select spot, um (USDT-margined derivatives), or cm (coin-margined derivatives), in alignment with the data-source node configuration.
3
Set virtual capital and rates
Configure initial capital, trading fees, slippage, and other parameters. Use settings that match your planned live deployment for more representative simulation results.
IV. Parameter Reference
The trading engine exposes these parameters in simulation mode:
| Parameter | Description |
|---|---|
| Exchange | binance / okx; multiple exchanges can be added |
| Market type | spot / um (USDT-margined derivatives) / cm (coin-margined derivatives). Select one appropriate for the strategy type; market-neutral strategies support derivatives markets only |
| Initial capital | Virtual capital used for simulated trading. Spot and USDT-margined markets are denominated in USDT; coin-margined markets are denominated in units of the coin |
| Order type | Market order: executes immediately. Limit order: placed at the current price adjusted by the configured slippage |
| Slippage | Expected slippage percentage. 0.03 means 0.03% |
| Trading fee | Fee percentage for each trade. 0.04 means 0.04%; use the actual rate of the target exchange where possible |
| Asset leverage | Applies only to derivatives markets. A value of 1 means no leverage |
💡 Tip: Keep simulation parameters as close as possible to the planned live settings. Fees and slippage in particular directly affect net strategy performance.
V. Simulation Configuration Panel
The panel below is the actual trading-engine configuration panel in simulation mode. Interact with it to explore every setting.
Trading Engine Configuration (Simulation Mode)
Up to 1 exchanges at your current membership level.
Market orders execute immediately; limit orders are placed at the current price plus or minus slippage.
0.03 = 0.03%
0.04 = 0.04%
An integer from 1 to 500 that caps leverage used by this node.
This affects only assets selected by the data source. Exchange leverage changes only when its current value is lower; exchange limits take precedence.
The strategy enforces hedge mode.
VI. Launch and Monitoring
After configuration, click Run to launch simulated trading.
1
Click Run
After clicking Run in the workflow editor, select an available server in the dialog. The strategy then follows live prices and generates trading signals using virtual capital.
2
Monitor in real time
Monitor strategy status in real time on the My Trading page.
Equity curve
View cumulative returns, daily return changes, and maximum drawdown
Positions
View current position details, including side, quantity, and unrealized profit and loss
Trade history
View the complete history of entries and exits and profit-and-loss statistics
Strategy logs
View detailed strategy execution logs for debugging and troubleshooting
VII. Simulation vs. Backtest vs. Live Trading
| Comparison | Backtest | Simulation | Live trading |
|---|---|---|---|
| Market data | Historical data | Live data | Live data |
| Capital | Virtual capital | Virtual capital | Real funds |
| Fill model | Idealized fills | Idealized fills | Actual fills |
| Capital risk | None | None | Yes |
| API required | No | No | Yes |
| Server required | Yes (free option available) | Yes | Yes |
| Purpose | Validate strategy logic | Validate real-time stability | Production operation |
Recommended path: Backtest → Simulation (1–2 weeks) → Live trading (small-capital trial) → Live trading (full operation). Progress gradually and increase capital in stages.
FAQ
Q: Will simulated trading produce the same results as live trading?
A: Simulation uses live market data but an idealized fill model. Live trading may involve greater slippage, latency, and insufficient liquidity, so actual returns can differ. The direction and trend of simulation results are still useful references.
Q: Can I run multiple simulated strategies at the same time?
A: Yes. You can deploy multiple simulated strategies concurrently. Each runs independently, making it easy to compare their performance.
Q: How long should a simulation run before I go live?
A: Run it for at least one to two weeks and cover different market conditions—rising, falling, and range-bound. Consider live deployment only after returns and risk controls behave as expected.
Q: Does simulated trading require a connected exchange API?
A: No. Simulation uses virtual capital and does not connect to a real exchange account, so no API key is required. You must still select an available server when launching the simulation; only live deployment additionally requires an exchange API.
Q: Can I return, replace, or reconfigure a server used for simulation?
A: No. Simulation and live servers cannot be returned or exchanged, and an existing server cannot be upgraded, downgraded, or otherwise reconfigured. To change specifications, purchase a new configuration and migrate the task. Remaining time from a purchase or renewal is non-refundable.
Q: Can I stop a simulated strategy at any time?
A: Yes. A simulated strategy can be stopped and restarted at any time without affecting real funds. Historical run data remains available on the trading page after it stops.
Q: How should I set simulation parameters?
A: Match the planned live configuration as closely as possible, especially initial capital, fees, and slippage. This makes the simulation more representative of live performance.