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How To Paper Trade With TradingView And Mizar?

Features
29-NOV-22
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If you’re reading the article, you might have heard a word or two about TradingView charting tool featuring stock, options or crypto paper trading. This write-up elaborates on TradingView limitations and explains why & how you can combine the platform with Mizar paper trading for a fuller and safer live-testing experience.

Key Takeaways

  • Advanced analytical tools and testing your strategies live may significantly increase your profits and limit losses.

  • TradingView and other platforms offer backtesting and limited live testing. Both may not be accurate and are usually limited to signals only, not strategies.

  • Mizar features Live testing, which is much better than backtesting because you don't have the risk of overfitting your model [Mizar testing model is much more flexible than backtesting simulations].

  • You can combine TradingView or other platforms with Mizar Live Testing for better trading performance.


Paper Trading TradingView

TradingView is a community-driven charting platform to provide analysis tools to trade various markets. You can track crypto assets, get trading resources, and trigger trades directly via an API connection. As of writing, TradingView offers the following features.

  • Premade technical trading indicators

  • Volume profile indicators in one click

  • Candlestick pattern recognition

  • Modified templates for indicators

  • Advanced drawing tools

  • Multiple timeframes

  • Automated Fibonacci retracement

TradingView also offers a competitive paper trading system. However, it doesn’t support testing strategies — you can only test signals with quite limited analytical tools. The TradingView platform allows you to open a signal manually through the paper trading terminal and set one Take Profit and one Stop Loss.


TradingView Paper Trading limits you to the following.

  • Test strategies, which could include DCA, multiple take profits, different entry zones, multi stop-loss, and advanced features like timeouts and more

  • Test automated strategies that use signals generated from TradingView

  • See advanced analytics such as accumulated profits, drawdown, and more

Check out the tutorial about TradingView paper trading

Let’s now consider the TradingView paper trading alternative — Mizar automated trading platform. The platform offers fully-fledged investing strategy live testing and advanced analytical tools. You can combine some TradingView functions with Mizar for better performance. 


How to Paper Trade with TradingView and Mizar?

You can follow the steps described to get started with paper trading on TradingView and connect to Mizar automated trading platform. Here’s a step-by-step breakdown.

  • Identify the Chart & Indicator

  • Create Your TradingView Alert

  • Pick Your Bot on Mizar 

  • Integrate Your DCA [Dollar-cost average] Bot Into The Alert

  • Flex Other Bots & Test


Crypto Paper Trading: Integrate Your TradingView Alert Into Bot

Here’s a detailed video guide on adding your custom TradingView alert into the Mizar bot captured by one of our traders. 


Crypto Paper Trading: Flex Other Bots & Test

Mizar offers a wide range of trading bots you can use to benefit from bullish, bearish, and sideway markets alike. Most importantly, you can build and test whole strategies in a safe environment — the feature TradingView virtual account doesn’t provide. 

You may pick various bots from the marketplace, build your very own custom bots and combine them with advanced trading alerts from TradingView to get the best returns on your investment. Let’s now talk about Mizar in detail. 


Crypto Paper Trading with Mizar 

Here’s what you can do with Mizar automated trading platform.

  • Manage your orders by Dollar-Cost Averaging [DCA

  • Manage your order via multiple entries, take profits/stop loss, and much more. 

  • Test your strategies in real time with paper trading features on Mizar. Track performance with no risks, test high-risk strategies and manage orders for the best results.

  • Advanced analytics, realized/unrealized PnL, drawdown, Sharpe ratio, and much more.

Live testing is the cornerstone of your safer trading experience, which is why limited testing features may cut off your potential profits or cause losses. To avoid such situations, Mizar offers fully-fledged strategy paper trading. You can mirror real-life conditions in a safe environment to put a strain on your strategies. Moreover, live testing implies you don't have the risk of overfitting [the model is useful for a specific data set, not others] your model.

Accurate live testing by Mizar maximizes your chances to mirror real-life trades by evaluating the best intervals for a specific strategy, advanced data feeds, and other high-level tools. Let’s boil down some of them for clarity.


Crypto Paper Trading: Profit and Loss (P/L)

P/L is one of the most important parameters to track your trading success. There are many ways to measure the P/L ratio. Mizar combines some of them for the most accurate estimate. Some of the variables include Year-to-Date (YTD) P/L, transaction-to-transaction P/L, and open & closed positions. This is the initial step toward further trading strategy analysis. 


Crypto Paper Trading: Drawdown

Drawdown is the percentage between peak and trough. Imagine you invest $50k as initial capital. After all the executed trades, your paper trading portfolio shows a loss of $5k before bouncing back to the initial $50k. The drawdown is 10%. You can set a specific range or average drawdown over the testing period. If the strategy exceeds the drawdown specified, you may consider other strategies. 


Crypto Paper Trading: Sharpe Ratio

The Sharpe ratio compares your returns with the risk by dividing the excess returns by a measure of volatility to evaluate performance. The parameter may either use historical returns or forecast feeds. The higher Sharpe ratio indicated better performance. You may set the ballpark figure around one [1] and reconsider strategies if they drop below that. The Sharpe ratio should be used sparingly, combined with P/L, drawdowns, and more.

Mizar paper trading features many more tools for accurate backtesting. If you want to experience paper trading to the fullest, make sure to try out the Mizar features for free.


Closing Thoughts

Even though TradingView free paper trading simulator is a powerful tool to test trading signals, it still lacks multiple features other trading platforms have. Relying on signals alone can affect your trading badly, which is why you might want to combine TradingView with more advanced paper trading tools like Mizar. Learn more about using trading signals and automated trading bots for profits.



FAQ

What is Paper Trading?

Paper trading is a trading simulator allowing you to test strategies and practice buying and selling assets without any risk of loss. 

What is Paper Trading Account?

A Paper trading account is your simulated trading account, allowing buying and selling of assets in a safe environment. 

What is Paper Trading on TradingView?

TradingView paper trading account allows you to buy and sell assets with no risks. You can also develop crypto trading signals and build strategies around them.

How to Start Paper Trading?

You can start paper trading by opening an account on any platform that supports paper trading. Mizar crypto paper trading platform is one of the best paper trading solutions on the market.