The PaperTrading module is a trading simulator. Each user understands that it does not in any case allow the creation of real orders. Any order, gain or loss must be considered as virtual. The PaperTrading module is only a decision-making tool. Each user is solely responsible for all their own trading operations and portfolio management.
The PaperTrading Module introduces a variety of icons in most ProRealTime windows, creating an integrated interface for order simulation.
As PaperTrading Module aims to create a training environment in real market conditions, it is only available with intraday data access.
The quickest way to place an order is to use the Order Templates Toolbar, that appears in the top-right of the charting window (see the yellow frame in the image below). Order Templates allow you to place predefined orders by simply clicking on the chart. A number of order templates have been created for you. You can customize or delete them to create order templates more appropriate to your trading style.
For a detailed description of Order Templates, click here.
Place orders from Order Book window
If PaperTrading is active, you can place orders directly from the Order Book.
First select the order type (Limit or Stop) and define the number of stocks or contracts associated to this order, by using the selector on the right. For stocks only, you can also set the size of your order by defining an amount of cash.
Then, click on to place a buy order, or on to place a sell order.
Depending on the order type chosen (Stop or Limit), the bid & ask columns will automatically propose the buy icon or sell icon: for example, a stop order implies selling on Bid prices and buying on Ask prices.
Depending on the security, an order book can show 1, 5 or 10 Bid & Ask lines. To grant maximum precision when placing orders, you can now increase the number of lines shown in the order book from the selector at the bottom right of the window shown above. You can then set orders close to the best bid & the best ask or far from the last price.
Every order is shown both on the order book and on the chart. If the order is executed, it disappears from the order book window, and will be shown only on the chart.
The icon allows you to hide or display the PaperTrading section.
Associate orders to Alerts
From the ProRealTime Main Window, click on to activate the Alert mode. Move the cursor to the chart or near to a specific object drawn and click: the Alert Settings window appears.
If the PaperTrading Module is active, you will be able to associate an order to an Alert by activating the check box shown in the image.
First define the conditions composing your Alert, by using the drop-down menus proposed. Then check the "Associate Order" box and setup your Order:
- Choose Buy or Sell if the conditions are met
- Associate a quantity to the order
Every order associated to an Alert is an "At market" order, that will be placed only if the conditions are met and the alert is triggered. This functionality is very useful to associate orders to indicators and to create an order based on multiple conditions.
Let's assume the price is close to the resistance of a downtrend channel and RSI(14) < 70.
We can set an alert that opens a short position if the price crosses the resistance line and RSI >= 70.
Orders associated to Alerts are not visible to the market (these are called "soft-orders"). These orders will be deleted if they have not been executed when you close the workstation.
Place orders from Lists and Charts
The PaperTrading Module introduces the buy icon and the sell icon in most ProRealTime windows, such as:
- Price charts
- ProRealTrend Detection
- Top Movers
Therefore, you can open a chart or select a security from a list and click on these icons to place an order for that security. A "New Order" windows appears and gives you the choice among all the order types available (see image below) .
Place your order by choosing "Buy" or "Sell", the validity and the order type. In case the order is not "At market", just type the price level for the order type of your choice. Then click OK and the order is placed directly on the chart selected.
You can also create an order composed of two or three legs. To do so, click on the "Multiple-leg order" button and a new window will give you three choices illustrated in the image below.
Select a Multiple-leg type and click OK. The "New Order" window will then include two or three tabs (depending on the option chosen): configure each leg separately and confirm. The orders will be placed directly on the chart.
The "New Order" window offers the same options available for "Order Templates", with the following differences:
- Order settings are not saved for later use
- Orders are placed by typing in the price level (instead of clicking on the chart)
A detailed description of the order types included in the PaperTrading Module is at your disposal.
Order validation & settings
From the "Order validation and settings" window you can define the maximum amount of cash or the maximum quantity of stocks (or contracts) associated to each order. To access the window, click on the "Trading" menu in the ProRealTime main window, then click on "Preferences".
In the same window you can also modify the settings for notifications related to orders.
Following the most stringent market rules, ProRealTime proposes a default configuration where every action related to orders requires validation (with a popup). Just check or uncheck the settings you consider useful for your trading simulation.