Everything You’ve Ever Wanted to Know About Paper Trading ToolsSource: Photo by Aaron Burden on Unsplash
Paper trade is otherwise also called as virtual trading. It is a process in which one can practice option trades. This is done usually by keeping in mind imaginary money and taking a position based on self-research and learning from the same. Since it’s done in real-time market values it behaves in the same fashion as the real trade.
Paper trade is usually very easy to manage and handle when there are not many complex and multiple instruments involved. The task increases when there are many variables and which requires many calculations.
WHY IS PAPER TRADE ESSENTIAL?
It is a really expensive experience to lose real money and learn the tricks of the trade. One of the biggest advantages of paper trading is that you can back test your strategy and keep improving for increasing its chances of success before putting in real money.
It is a market simulation where its replicates some or part of the features of the live stock market.
#1. To Practise your Method
Understanding and implementing your method is equally important as much as the method itself. Paper trading will give you an idea in case you are wrong. At the same time, correction in a method in paper trade is much easier and cost effective when compared to the real trade.
#2. Test your Method
Every new idea or method of trading you come across or is suggested to you by someone it is important to paper trade. This will give you the right understand the method. This would also not put your hard earned money to risk,
#3. Understand Option Trading Adjustments
When a particular trade or prediction is going wrong a right option adjustment can not only save you from right adjustment but can also turn your losing strategy to profit. With the right amount of experience in the paper, trade can enhance your option trading adjustments.
#4. To Know outcome of Multiple Trading Adjustments
Many a time in a real trade you can have only one adjustment. But paper trade will help you understand how did the alternative paper adjustments performed over the actual paper adjustment. This can over a period of time help in improve your adjustments and give a better performance outcome.
#5. To Understand a Concept
Sometimes to understand the impact of vital and complex details it’s very important to paper trade. Especially to understand the importance of VIX and OPTION GREEK this is the most recommended method to start off with.
RIGHT TOOLS TO PAPER TRADE
One of the most popular online tool which is currently absolutely free to use and it covers all the advanced feature including Greek Management. Stock Trading and Futures Trading Tools | Free Options Trading Tool developed by Mr. Umesh Ranglani. Website – OptionTracker
As mentioned in the website Option Tracker
With this online tool, you can manage all your trades in one place, record new trades, measure your trading success, and strategise Entry and Exit points to maximise profits and minimise losses. The system can help you monitor near real-time data (with only a 15-minute lag) from multiple exchanges, seek out opportunities that you won’t want to miss, and automatically send the details of trades you wish to execute to your designated Broker.
Advantages & Benefits of using Option Tracker
Keep track of your NSE (Cash, F&O, Currency) and MCX Commodities trades Use near real-time exchange data (with only a 15-minute lag) to calculate your MTM P&L, Stop-loss and TargetsCalculate Greeks for all strike pricesAuto-calculate pay-offs for strategies such as Bull Spreads, Iron Condors, Strangles, and many moreTrade Volatility by comparing Implied and Historical Volatility valuesPull-in Options Trades data (Delta-neutral; meaning non-directional) based on events such as quarterly results and RBI monetary policiesPull-in Pair Trades data based on our proprietary Algo Trading formulas.Share trade results with your friends on FacebookInteract with other traders in the OptionsTracker.net social media community to share knowledge, strategise trades, and discuss other Options trading related news.
Option Oracle and Plugin By Santosh Kumar Pasi
Feature as mentioned in the website Pasi Technologies
OptionsOracle is free tool for stock options trading strategy analysis, built for options traders. OptionsOracle is a powerful tool that allows testing of different options strategies using real-time options and stock-market information. The tool provides an easy interface to build a stock/options position and then test it using graphs and analytical tools. Its payoff chart helps to analyse strategy status at different price, date and volatility.All credit goes to original team of Samoasky (specially Shlomo Shachar and Oren Moshe)Thank you for all near and dear ones, including family members, colleagues, participants of “Options Strategy Workshop” and users of “Options Strategy Premium Tools” and members of blog and FB group members for supporting us and encouraging us.This is slightly updated version by us using original codes from Sholomo Shachar and Oren Moshe.It is simply the best free options analysis tool, that gives you all you need – options strategies analysis, options screener, volatility analyzer, greeks calculator, and portfolio manager.
- OptionsOracle wizard is sophisticated options strategy screener that allows checking. customized or pre-configures strategy over multiple stocks, with all the options combination.
- OptionsOracle Wizard feature is part of OptionsOracle. OptionsOracle options Greeks calculator can be used to check options-pricing in more detail. The calculator also provides the ability to quickly load the market options, and check them under different scenarios.
- OptionsOracle also includes a multi-portfolio manager that allows you to monitor your positions in separate portfolio or in one main portfolio. The portfolio also provides the ability to quickly navigate between the saved strategies, allows simple and effective user-interface.
Disclaimer by Pasi Technologies
1. Please use this tool at your own risk.2. I’ll not be responsible for any risk or damage to your system or data or wealth or health or whatsoever.3. You are downloading data at your own risk, and any liabilities remains with you whatsoever including downloading options chain data.In case of query, feel free to contact me.
Read Also: Disadvantages of Paper Trading
Over To You
Why It’s Easier to Succeed With Paper Trading Than You Might Think.
This Intermediate Guide to Paper Trading will make sure that you are well prepared before you really start trading and deploying real money.
Let us know if your comment if you have anything to say about your experience in paper trading.
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