Paper Trading Account Explained

A Paper Trading Account in the Options Auto Trader allows you to simulate trading strategies without risking real money. It's an excellent way for new users to test strategies or for experienced traders to refine their tactics before using real capital. This article will walk you through how to set up and use a paper trading account with Options Auto Trader.

Step 1: Creating a Paper Trading Account

Setting up a paper trading account is simple:

1. Log into your Options Auto Trader account.
2. Navigate to the Broker Connection page.
3. Click on Create Account under the Paper Trading section.
4. Your paper trading account will be created instantly, and you can start using it to simulate trades.

Step 2: Connecting a Live Broker Account

In order for the paper trading account to work correctly, you must first connect a live broker account. The live account provides real-time data, which the paper trading account uses to simulate trades accurately.

To connect your live broker account:

1. Go to the Broker Connection page.
2. Select your broker (e.g., TastyTrade or Tradier) from the available options.
3. Follow the prompts to securely log into your broker and authorize the connection to Options Auto Trader.
4. Once connected, real-time market data will flow from your live account to your paper trading account.

Step 3: Understanding How Paper Trading Works

Paper trading allows you to:

• Execute trades in real-time market conditions, just as you would with a live account.
• Test strategies without the fear of losing money, perfect for beginners or anyone looking to refine a trading plan.
• Simulate trades with virtual funds, so you can see how your strategies perform over time.

Even though you're using virtual money, your trades will be based on real market data pulled from your connected live broker account. This gives you an accurate reflection of how your trades would perform in the real world.

Step 4: Monitoring Paper Trades

Once your paper trading account is active, you can monitor your trades and performance:

1. Go to your Dashboard to see the current status of your paper trades.
2. Review your trade history to analyze how well your strategies are working.
3. Make adjustments to your trading strategies as needed based on the results of your paper trades.

Step 5: Transitioning to Live Trading

When you feel confident with your paper trading results, you can easily transition to live trading:

1. Ensure your live broker account is connected.
2. Switch from the Paper Trading account to your Live Trading account within Options Auto Trader.
3. Start executing real trades with the same strategies you’ve tested in your paper account.

Troubleshooting

• Paper Account Not Working: If your paper trading account isn’t functioning, make sure your live broker account is connected. The paper trading account requires live market data from a connected broker.
• Incorrect Market Data: If you’re experiencing delays or incorrect data in your paper account, check the connection with your broker. Reconnect if necessary to ensure real-time data flow.

Conclusion

A Paper Trading Account in Options Auto Trader is a risk-free way to practice and perfect your trading strategies using real market data. By setting up a paper trading account and connecting it to a live broker, you can simulate trades and analyze performance before committing real capital. This is a powerful tool for both new traders learning the ropes and experienced traders fine-tuning their strategies.

For any additional help or questions, feel free to contact our support team via email or live chat on the platform. Happy trading!