New Strategy
Sign up

Trading engine node

1. Node overview

The trading engine is the execution endpoint of a quantitative strategy. It converts strategy signals into actual orders and supports four run modes: backtest, paper trading, testnet, and live trading.

Position in the data flow
Data source→Data processing→AI model→Strategy type→Position management→Risk control→Trading engine
Backtest mode

Validate strategies with historical data

Supports bar- and tick-level precision

No capital at risk; iterate quickly

Paper trading

Test in real time with virtual funds

Validate against live market conditions

No capital at risk; close to live execution

Testnet

Exchange test-network environment

Validate real API integration

Test funds; no real capital at risk

Live trading

Connect to an exchange for real trading

Supports Binance and OKX

Real funds; proceed with caution

2. Interactive configuration

The panel below is the actual trading engine configuration. Use it to explore every setting directly.

Trading engine configuration

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.

3. Run modes

The engine supports four run modes. Validate a strategy progressively in this order: backtest → paper trading → testnet → live trading.

3.1 Backtest

Simulate trading on historical data to evaluate a strategy.
ParameterDescription
Backtest precisionbar (candlestick level) / tick (synthetic intrabar path level)
Exchangebinance / okx; multiple exchanges can be added.
Market typespot / um (USDT-margined futures) / cm (coin-margined futures). Choose one compatible with the strategy type; market-neutral strategies support futures markets only.
Initial capitalVirtual capital used for the run. Spot and USDT-margined markets use USDT; coin-margined markets use the quantity of the underlying coin.
Order typeMarket: fill immediately. Limit: place at current price +/- slippage (buy price = current price × (1 + slippage); sell price = current price × (1 - slippage)).
SlippageExpected slippage percentage. 0.03 means 0.03%.
Trading feeFee percentage per trade. 0.04 means 0.04%.
Symbol leverageAffects only symbols selected by the data source. Exchange leverage is changed only when the exchange setting is below this value. If this value exceeds the exchange maximum, the exchange maximum applies. 1 means no leverage.
Bar-level backtest
Uses candlestick OHLC data to simulate fills. It is fast and suitable for initial validation and parameter optimization.
Tick-level backtest
Constructs a finer synthetic price path by interpolating minute OHLC data, but does not contain real trades, quotes, or order-book events. It is useful for detailed tuning but is not equivalent to live execution.
Tip: Backtest results are for reference only; historical performance does not guarantee future returns. Tick-level precision can refine trigger timing only within the simulated path; it cannot validate real spreads, fill priority, partial fills, or market impact. Backtest multiple periods and verify actual execution in paper trading.

3.2 Paper trading

Test a strategy with virtual funds in live market conditions.
ParameterDescription
Exchangebinance / okx; multiple exchanges can be added.
Market typespot / um (USDT-margined futures) / cm (coin-margined futures). Choose one compatible with the strategy type; market-neutral strategies support futures markets only.
Initial capitalVirtual capital used for the run. Spot and USDT-margined markets use USDT; coin-margined markets use the quantity of the underlying coin.
Order typeMarket: fill immediately. Limit: place at current price +/- slippage (buy price = current price × (1 + slippage); sell price = current price × (1 - slippage)).
SlippageExpected slippage percentage. 0.03 means 0.03%.
Trading feeFee percentage per trade. 0.04 means 0.04%.
Symbol leverageAffects only symbols selected by the data source. Exchange leverage is changed only when the exchange setting is below this value. If this value exceeds the exchange maximum, the exchange maximum applies. 1 means no leverage.
Paper trading vs. backtesting
Backtest

• Uses historical data

• Quickly validates strategy logic

• Can be repeated many times

Paper trading

• Uses live market data

• Validates live-like strategy behavior

• Tests system stability

Tip: Run paper trading for at least one to two weeks. Observe performance across different market conditions and proceed to live trading only after the strategy is stable.

3.3 Testnet

Run on an exchange test network with test funds to validate API integration.
ParameterDescription
Exchangebinance / okx; use a testnet account for the selected exchange.
Market typespot / um (USDT-margined futures) / cm (coin-margined futures)
Trading accountSelect a linked testnet account.
Tip: An exchange testnet validates API connectivity and order execution logic without risking real funds.

3.4 Live trading

Connect to an exchange API and trade with real funds.
ParameterDescription
Exchangebinance / okx; multiple exchanges can be added.
Market typespot / um (USDT-margined futures) / cm (coin-margined futures). Choose one compatible with the strategy type; market-neutral strategies support futures markets only.
Trading accountSelect a linked exchange account.
Linking a live account
1
Exchange management
2
Link API
3
Select account
4
Start trading
Security: API keys require trading permission only; never grant withdrawal permission. Use an IP allowlist to restrict access further.

4. FAQ

Q: What is the difference between bar- and tick-level backtesting?
Bar-level backtesting simulates fills from candlestick OHLC and is fast. Tick-level backtesting builds a finer synthetic path by interpolating minute OHLC and is slower. Neither uses real exchange trades, quotes, or order-book events. Tick-level mode is useful for sensitivity testing, but cannot replace paper or live validation.
Q: Why can a market-neutral strategy use futures markets only?
A market-neutral strategy must hold both long and short positions to hedge market risk. Spot markets support long exposure only, so a neutral strategy must run in a bidirectional futures market, either USDT-margined or coin-margined.
Q: What unit is used for initial capital in coin-margined futures?
The underlying coin is both collateral and settlement currency. For example, initial capital for BTC coin-margined futures is specified in BTC, and profit and loss are settled in BTC. This differs from USDT-margined futures, which are denominated in USDT.
Q: What is the difference between market and limit orders?
Market orders fill immediately at the available market price, prioritizing execution but allowing price variance. Limit orders are placed at current price plus or minus slippage—higher for buys and lower for sells—to improve fill probability while controlling cost. With 0.03% slippage and BTC at $50,000, the buy limit is $50,015.
    BeeQuant - AI Quantitative Trading Platform